European Central Bank President Christine Lagarde stressed on Monday that the policymakers must "communicate effectively to ensure that medium-term inflation expectations remain anchored during the process."
During a speech she held at a seminar organized by the European Economics & Financial Centre, Lagarde stated that people’s attention in the internet era cannot be taken "for granted," as it has become "increasingly challenging to disseminate factual information," since "falshoods" on social media nowadays spread much faster than "facts."
In such an environment, "trust in public institutions" has become a great issue, Lagarde underlined. The ECB head insisted that "it is not only about getting the policy right, we also have to talk about it in the right way."