hype in science. it is perfectly normal for scientists to disagree on the explanation of a given phenomenon. the inexact science of economics is second to none in this respect. scientific communication, especially the sort that aims to help you in making informed choices, should mostly be about the abcs of disciplines, and therefore largely unaffected by disputes at the frontier of knowledge. however, if you assume that truths about nature must be immutable, coherent and all - encompassing, disagreement between experts is a potential source of mistrust even for the most basic facts of science. a specific problem arises when the public becomes aware of some ‘ resounding breakthrough ’, which makes the headlines as a result of an ambitious researcher, or a journalist of a sensationalist bent trying to gain visibility, even if what is presented may only consist in preliminary findings described in a working paper. that hype can prove harmful to scientific dissemination, and sometimes even to people ’ s health, was shown clearly by an article published in 1998, which suggested a correlation between the measles, mumps and rubella ( mmr ) vaccine and some forms of autism. 29 it took as long as 12 years for the article, which had been recognised as not just wrong but also fraudulent, to be taken out of circulation. 30 by then, however, fear and suspicion had become rooted across broad sectors of the population — and, one surmises, this fact contributed to the suspicion towards vaccines during the recent pandemic. based on other case studies too, such as that on mad cow disease, the scientific community has responded with strategies that make it faster to ‘ delete ’ fake theories. 31 3 ) fake news. if it is hard enough to keep the spread of erroneous information within the scientific community under control, the challenge becomes quite daunting on the web and in the media generally. a 2019 report prepared for the european parliament finds that about half of european citizens say they are unable to distinguish between fake and trustworthy science news, and recommends that the school system take upon itself the task of educating minds on how to recognise ‘ false truths ’. 32 4 ) antagonistic cultural meaning. as shown by several science of science communication studies, in fact the credibility of science is not systematically in doubt. on the contrary, ‘ the number of issues that actually display the science - communication problem is orders of magnitude smaller than the number that do not, but plausibly could ’. 33 in

in three key areas to counter systemic risk more effectively : better analytical tools, new instruments that counter the development of risk outside the banking sector and a clearer framework to govern policy actions. the past decade has seen a sustained improvement in the tools available to assess risks to financial stability. better data and better modelling techniques have revealed important insights. developing the analytical toolkit to adequately monitor interconnectedness and contagion requires granular datasets, and the ability to map and link data across entities and markets. the sub - prime crisis in the us banking sector spread to european banks through their direct exposures, but it also spread to insurers through the use of credit default swaps. 10 only a holistic view of the system will allow potential contagion channels to be identified and modelled. and that requires investing in new technologies for data analytics and enhancing the capacity for authorities to link and share data and technical knowledge. the second area of improvement for the macroprudential framework in europe involves keeping pace with developments in the financial system. that requires broadening the range of macroprudential instruments beyond those currently available, which focus almost exclusively on the banking sector. for the insurance sector, the contours of such instruments are taking shape. they include solvency instruments such as symmetric capital requirements for cyclical risks ; liquidity instruments for insurers with a vulnerable liquidity profile ; and instruments to target bank - like activities to ensure macroprudential policy is consistent across sectors. 11 the third area for improvement in macroprudential policy involves establishing a clearer conceptual framework to govern policy discussions and interventions. such a framework would facilitate communication with market participants and the general public, as well as help mitigate any risk of inaction bias. 2 / 4 bis central bankers'speeches for monetary policy the framework is well known and the reaction function of central banks is normally well understood by markets. by contrast, the framework that governs macroprudential policy interventions is much less developed, due in no small part to our limited experience of using these tools. the objective of financial stability is broader than the objective of price stability, so is less easily defined by a single numerical measure. developing the policy framework is challenging and will take time. the esrb approach uses the concept of residual risk, which is the difference between the level of risk and the current resilience of the financial system. 12 in setting up the framework, policymakers need to establish the level of residual risk that