Ignazio Visco, a member of the European Central Bank Governing Council, stated that central banks needed to work on improving communication when it comes to exiting from an unprecedented monetary policy. Communication is key in an exit strategy in this situation.
"The exit from unconventional monetary policy is crucial. First the Americans, and the others later, will make sure that this will be more understandable and communicate better," Visco told reporters in Moscow. Visco, who was also head of the Bank of Italy, attended the G20 summit held in Russia. The meeting comprised 20 finance ministers and central bankers. Visco added that policy makers present in the summit "talked for a long time about U.S. monetary policy, about communication and the importance of making communication less inclined to create market volatility."
Last June 19, US Federal Reserve Chairman Ben S. Bernanke stated a possible dialing down of the Fed's bond-buying program was possible this year. The market has responded by giving US treasuries higher yields.
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