A computerized neural network has spoken: central banker Elvira Nabiullina needs to use simpler language if she wants more Russians to believe she can really reduce inflation. From a report: A study conducted by a pair of the Bank of Russia’s own researchers came to the perhaps less-than-shocking conclusion that figuring out central bank statements takes a degree in economics. “All the main communication on monetary policy is accessible to only a professional audience right now,” Alina Evstigneeva and Mark Sidorovsky, researchers at the bank’s monetary-policy department wrote in an article published on a bank-sponsored website. “The potential for qualitative improvement in the language of communication is vast.” The communications breakdown has important real-world implications, they argued. Ordinary Russians continue to be deeply skeptical of the central bank’s commitment to keep inflation to its 4% target, with polls showing most expect price growth over the next year to be about triple that. That doubt helps keep inflation high, according to the central bank. Market professionals, who presumably have the economics education needed to understand the bank’s words, are much more likely to expect inflation to be closer to target.
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