thus, there was the need to move away from the direct control to market - based regimes introduced in the late 1980s under the structural adjustments and financial sector liberalization policies pioneered by the imf and world bank. 6. these had significant impact on the economies of most african countries. financial markets have deepened with innovative products alongside increasing integration of african markets to the global financial markets. 7. as time progressed, it became imperative for african central banks to pursue forward - looking monetary policy to tackle price stability which is a necessary condition for sustainable growth. in so doing, some of our members such as ghana, south africa, and uganda adopted the inflation targeting monetary policy framework, while other central banks de - emphasized the role of monetary aggregates and started incorporating elements of forward - looking monetary policy frameworks. 8. mr. chairman, forward - looking monetary policies can only be effective if the central bank is able to shape inflation expectations of the public to align with the medium term inflation target. to do this, the central bank needs to be transparent with regard to the monetary policy objective and provide a clear policy direction on how to achieve it. communication and transparency helps shape and anchor inflation expectations as well as build policy credibility towards delivering the core mandate of the central bank. 9. in the case of financial stability, central bank communication strategy should be developed with utmost care in order not to incite unnecessary and unintended reaction from the market. there is therefore the need to maintain a delicate balance between transparency and accountability on one hand, and the probability that the information being communicated could unsettle markets. a transparent and credible communication strategy is feasible in a context of a stable market underpinned by effective regulatory and supervision regime. central bank communication and challenges 10. mr. chairman, transparency and policy credibility that underpin forward - looking monetary policies and market - based prudential regulations call for effective central bank communication. to quote the deputy governor of the federal reserve bank of new zealand, “ central banks ’ pronouncements have economic and social impact ”. therefore, central bank communication strategies must be underscored by accountability and transparency. this involves deepening understanding of economic relationships and their ultimate impact on inflation, and signalling monetary policy actions which provide forward guidance to market participants. 11. it is for these reasons that communication has become an additional tool in the kitty of the central banker. in several instances, central banks communicate interest rate policy decisions, risk assessments of inflation horizon and changes in inflation forecasts relative

jean - pierre roth : impact of the global crisis on switzerland introductory remarks by mr jean - pierre roth, chairman of the governing board of the swiss national bank, at the schweizerisch - deutscher wirtschaftsclub, frankfurt am main, 2 march 2009. the complete speech can be found in german on the swiss national bank ’ s website ( www. snb. ch ). * * * what started as a financial crisis has now become a global economic crisis. although the swiss economy was in a very sound state before the crisis set in, switzerland ’ s standing as a financial centre, its real economy and its public finances have all been strongly affected by the global turmoil. recovery will depend largely on the development of the us economy. despite having reached worldwide proportions by now, the crisis was not triggered by globalisation itself. rather, it is the result of a lack of discipline in the industrialised nations. monetary policy today must contribute to the stabilisation of the financial system and the real economy without losing sight of its principal task, which is to maintain price stability.