A communication gap between central bankers and the public

My former colleague, Czech central bank Vice-Governor Mojmir Hampl, in the OMFIF Bulletin on what he called a growing lack of understanding and a communication gap between central bankers and the public:

"... central banks have been warning about the risk of flooding for so long that they are now unable to explain that drought can be just as big a problem. They are also unable to explain that at times of drought you should water the garden, not keep draining it dry. And if the hosepipes are blocked, you must use other means to water the plants.

In tough economic times, it is difficult to describe quickly such a story to a public which is inattentive to the mysteries of complex systems. This is particularly true in the case of financially conservative and wealthy populations who strongly prefer future consumption to present consumption (and even more so in populations of net lenders rather than net borrowers like Germany, Austria or many other countries in central Europe).

This is the challenge which we, as a community of occasionally tedious central bankers, now face. We should hurry up."

Overcoming this challenge will be difficult, but hopefully not impossible...