Notice of RetractionThe Impact of Central Bank Communication on Public Expectations

Abstract

Countries around the world have attached great importance to the public expectations. Central bank communication is one of the most important means to guide expectation. This paper analyzes about the impact of the central bank signal on financial market expectations by designing the basic framework of central bank communication. Different types of monetary policy committee select dissimilar information contents and communication modes according to various needs of social groups. The influence of People's Bank of China (PBC) communication on shaping the public expectations is limited. It is important for PBC to persist in enhancing monetary policy transparency and improving its communication skill.