Communication the key to a successful policy making

Communication – the key to a successful policy making Bank of Albania experience Gent Sejko Governor

What are Bo. A’ main areas of responsibility? • Conducting monetary policy • Safeguarding financial stability • Promoting a safe and efficient payment system • Securing sufficient currency and liquidity in the market • Enhancing financial education and boosting financial inclusion 9/25/2020 2

What are the “reach out” challenges we currently face? Lack of adequate knowledge on: • the financial system • the role of the banks in the economy/society • the role of the central bank Too much room for speculation in the media, leading to: • Miscomprehension of Bo. A’s actions • Misleading of different parties and the public 9/25/2020 3

How do we deal with them? Through a continuous and thoroughly-elaborated communication, regularly combined with financial education initiatives. 9/25/2020 4

How important is it? FED “The revolution […] isn’t about technology or speed. It’s a revolution in our understanding of how communication can influence the effectiveness of monetary policy. […] The FOMC had journeyed from “never explain” to a point where sometimes the explanation is the policy. ” Janet Yellen’s Speech “Communication in Monetary Policy”, Washington , 4 April 2013 ECB “Communication is at the heart of monetary policy. It is a policy tool in itself. ” Mario Draghi’s Speech “Central bank communication”, 14 July 2014 9/25/2020 5

Principles we follow • Be clear & understandable o Easy and comprehensible messages o Consistent • Be transparent o Influence the market expectations o Guided by medium-term • Be a two-way communicator o Reach out a broad-based and diverse audience o Listen and learn from the public’s needs 9/25/2020 6

Our objectives • Informing the public about Bo. A’s tasks, policies and initiatives • Influencing economic policy decisions • Guiding and advising market behaviors • Bolstering credibility and reputation of Bo. A • Supporting the central bank activities 9/25/2020 7

Channels we use (new) Activities Public Educational Informal Website Social media Museum Facebook Twitter You. Tube Flickr Numismatic & educational 9/25/2020 8

Other channels we use (traditional) Press Conferences Releases Speeches Interviews Publications Reports Analyses Surveys Books 9/25/2020 Meetings Parliament Government Financial system Businesses Ad hoc 9

Throughout a year 8 press conferences 90 910. 000 activities and meetings website users 130 13. 500 press releases, speeches and interviews followers 9/25/2020 5. 000 3. 100 pages of publications Museum visitors 10

Its power When properly tailored, Communication can immensenly support a central bank in being: • Accountable You build-up confidence! • Reliable Your voice is heard! • Efficient Your message is paid heed! 11

Thank you for your attention! 12