The recognition of information asymmetries and uncertainties has led central banks to attach great importance to communication policy as a monetary policy instrument. In this paper, we argue that there is a role for central bank communication in maintaining and improving the resilience of the financial system. We conducted a systematic review of the empirical evidence on the financial stability effects of a range of different communication channels. The analysis identifies a pronounced effect of central bank communication on financial market variables, with statements and press conferences being seemingly the most effective channel of central bank communication. While less attention has been paid to written reports as a communication tool, our results also seem to support the view that written reports move asset prices
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