ABSTRACT
The chapter is organised in the following way. Section 2 offers a brief discus sion of the communication strategies of the two central banks and a brief review of the related literature on central bank communication. Section 3 outlines the measurement of communication and its dispersion in the two central banks. The hypotheses, the underlying data and the methodology for the empirical analysis are presented in Section 4. Section 5 then provides the empirical analysis of the effects and effectiveness of communication, as well as several robustness tests. Section 6 offers conclusions and draws some policy implications.
