Communications And External Relations For Central Banks

2002 Conference Series

4-day intensive residential programme, 8 - 12 September 2002
Venue: Christ's College, Cambridge

Dear Delegate,

The main objective of this course is to assist those charged with responsibility for external relations as well as press officers in central banks and regulatory agencies to manage effectively the organisation’s communications with multiple audiences. The course places communications as one of the key instruments for fulfilling the central banks’ commitment to appropriate transparency and accountability. It will demonstrate how a strategic approach to communications can help maximise the credibility and effectiveness of policy.

Financial markets, the media, government, parliament all have different information needs and require distinctive treatment. Increasingly, also, central banks take on educational functions. Meeting the needs of these multiple audiences is essential to underpin the central bank’s ability to fulfil its core mandate of assuring price and systemic stability.

The course has been carefully designed to include sessions on “best practice” in reaching all the principal audiences typically addressed by central banks’ communications and the means of reaching them, including in particular electronic methods of dissemination.

Presenters are experts in communications and the media as well as senior officers from the world’s leading central banks. In addition, delegates from central banks around the world will have the chance to discuss with their peers local experiences in this area.

Spread over four days this seminar will allow delegates to examine each of the critical elements of a successful communications strategy.

Once again we are proud to present a distinguished panel of presenters and the programme also benefits from the advice of Neil Whoriskey, of the Central Bank of Ireland, and Professor Charles Goodhart.

We look forward to welcoming you to Cambridge on September 8th , 2002.

Yours sincerely,

William Clarke, CBE, PhD
Chairman, Central Banking Publications

Sunday 8th SEPTEMBER

Reception Drinks and Welcoming Dinner

Monday 9th SEPTEMBER

COMMUNICATING WITH SPECIFIC AUDIENCES
Chairman: Neil Whoriskey

Strategy and tactics in communications
Keith Irons
Bankside

In an age where communications are becoming increasingly important, and the methods of communication increasingly varied, a coherent communications strategy for central banks is essential. An effectively planned communications strategy lies at the root of creating a successful public image. But communication is fraught with risk: central banks and supervisors need to define their objectives clearly so that their actions can be interpreted correctly. Timely and regular announcements of progress and an awareness of the different audiences and corresponding measures is required. Keith Irons, the presenter, is one of the most experienced financial public relations and communications consultants in the City of London.

Accountability and communicating with politicians
Manfred Körber
Head of External Relations Directorate, European Central Bank

A general trend towards independence has sparked acute concern among politicians that central banks and supervisors be accountable for their actions. Political support is essential for legitimacy, especially in times of crisis. Relations with parliaments can suffer from inappropriate or insensitive communications policy: the ideal relationship is one of mutual respect. Politicians need assurances that central banks are keeping to their remit: transparency has become a watchword for central bankers. Central banks’ tendency to obfuscate to keep scrutiny at bay is no longer possible in the quizzical society of today.

Communicating with financial markets
Gerard Lyons
Cheif Economist and Head of Global Research, Standard Chartered

Financial markets are less concerned with accountability or transparency than they are with sound performance. Without the confidence and trust of the markets to deliver satisfactory and predictable results, monetary policy becomes ineffectual. Credibility is key for policy to have optimal effect. A clearly defined mandate is crucial. Targets and goals are needed, but also constant cooperation and consultation with market players. This session explores how markets read central bank actions, and how central banks should adapt. In particular, what kind of information should central banks release, when and how? Gerrard Lyons is one of the most well-known economists in the City of London.

Communicating with the financial media
Ed Crooks Economics Editor, The Financial Times;
and Paul Wallace, The Economist

Central banks must be careful to cultivate a positive image in the financial press. Central banks are mainly concerned with explaining complicated technical information or handling highly market-sensitive information. But the press often follows people rather than issues, which can compromise independence. How can central banks know what the most appropriate information to give to the press is? How can they determine what information journalists find useful and what they will ignore, or what makes a good story? Central banks face a media whose function is to make – often critical – judgements about them. What informs this analysis? How do publications like the Economist or the Financial Times arrive at their editorial line? The group will discuss how to learn from the perspective of financial journalists and apply these lessons in practice in their media relations work.

Tuesday 10th SEPTEMBER

INTERNATIONAL BEST PRACTICE

How the Bundesbank manages public relations
Wolf-Rüdiger Bengs
Deputy Head of Public Relations, Deutsche Bundesbank

The Bundesbank is regarded with great respect in the central banking community, in part because of its considered and deliberate approach to the public discussion of policy. Here, its deputy head of external relations discusses how the Bundesbank approaches communications strategy and signals its intentions. In particular this session focuses on how formal elements of communications (speeches, regular publications and annual reports) function, and analyses recent changes in the media environment.

Communications at the Federal Reserve
Peter Bakstansky
Senior Vice-President, Federal Reserve Bank of New York

At the centre of global financial markets, the Federal Reserve Bank of New York has inevitably developed a strong communications strategy. It has forcibly learnt the importance of the credible, reliable and timely dissemination of highly market-sensitive information. Mistakes in this key area can critically undermine the core policy aims of a central bank. A professional and proactive stance is critical.

Coping with transition to independence at the Bank of England
Andrew Wardlow
Deputy Head of Public Relations and Chief Press Officer, Bank of England

As the role of the Bank of England has changed radically over the past decade, so has its approach to external communications. With independence, pressure from journalists for stories and “scoops” increases and it becomes ever more important to control and manage access by the media to sensitive information. The group will discuss the lessons for other central banks that can be learnt from this experience.

Round Table

A discussion among participants of the main topics that have arisen so far during the week, led by Neil Whoriskey, Central Bank of Ireland

Wednesday 11th SEPTEMBER

THE CHANGING FACE OF COMMUNICATIONS

Maximising use of the internet
David Bowen
Editor-in-Chief, Netprofit; Financial Times Internet Correspondent

For central banks, who operate on a global scale, the internet is an invaluable tool providing instantaneous access to an international audience. But many central banks do not fully exploit this new medium. There is still a lack of appreciation for what a website is for, what they can achieve, and how they can best be taken advantage of. A website gives a central bank an unparalleled opportunity to satisfy demands for transparency, and communicate directly with the markets and the public without the distortions of the media. But these different audiences have widely different needs and expectations. It is essential for central banks to understand this. The group will discuss how to apply this understanding in practice.

Best practice for central bank websites
Timo Laurmaa
Information and Publication Services,
Monetary and Economic Department, Bank for International Settlements

A professional and actively managed website for any public organisation has now come to be expected. The quality and usability of a website will affect the public’s perception of a central bank, and it must therefore be of the highest order. But too many central banks have poorly maintained and outdated websites which damage their professional image. Therefore a well-thought-out internet policy is essential. Here the key issues involved in building a first-class internet site are identified.

Television: how central banks can reach a mass audience
Evan Davis
Economics Editor, BBC

Central banks often have difficulty using television to good effect. But television is unmatched in its ability to allow central banks to transmit their message to the widest possible audience. Why have central banks been unable to achieve this and what can they do to increase coverage? When central banks do succeed in provoking interest from television, how can they assure that its image will be portrayed positively, and that the general public will understand its actions?

Media Training
Steve Levinson
(ex Channel 4 News), HBL Media

There are increasing demands made by the media to interact directly with senior personnel in central banks. Internal media training is being utilised by more and more organisations to ensure that their various spokespersons are fully equipped to give interviews and respond to media questions. Media training of key personnel can lead to a wider pool of spokespersons on specific issues. Steve Levinson has considerable experience in training central bankers for TV and media interviews.

Thursday 12th SEPTEMBER

MASS COMMUNICATIONS

Communicating with a global audience
Graham Hacche
Deputy Director of External Relations Depertment, IMF

Increasingly, central banks are confronted with communicating not only with their own domestic audiences, but also with a wider global audience. The approaches are significantly different. Identifying the issues that are relevant to a mass audience and finding the appropriate channels through which to communicate on this scale is a particular challenge. The IMF is, by definition, confronted with communicating to a global audience on a daily basis. The demands this places on the organisation and the methods through which it is achieved will be examined.

How to respond to a crisis
A panel of central bankers

Central banks were at the forefront in maintaining financial stability and public confidence in a time of world crisis, in the hours and days following the September 11 th events. A vital element of the success of the strategies adopted globally by key central banks was how this response in a time of crisis was communicated. What lessons can be learned from this and how should central banks prepare for the need to communicate effectively in a time of crisis?

Quite apart from this kind of one-off, global shock, all central bankers have to be prepared to cope with domestic or external crises of lesser magnitude, as part of their day-to-day work. Press and external relations personnel are always in the front line at such times, dealing with urgent inquiries from the public, politicians, the media and the markets. A group discussion with case studies

Assessing performance
Elisabeth Ardaillon
Head of Communications & Press Directorate, Banque de France

How can central banks determine whether or not they are successfully fulfilling their mandate? A central bank can benefit from understanding and measuring what the public’s perception of its activities is. More and more central banks are using regular public information surveys. What is the purpose of this and how do the results influence communications policy? What is best practice in this area in terms of the frequency of surveying, and should results be published?