We study the effects of central bank communication about financial stability on individuals’ expectations and risk …-taking. Using a randomized information experiment, we show that communication causally affects individuals’ beliefs and investment … behavior, consistent with an expectations channel of financial stability communication. Individuals receiving a warning from …

management of “Impossible Trinity” impact the communication strategies adopted by Reserve Bank of India (RBI) and the credibility …The Communication strategy for central banks is traditionally interlinked with one of their important mandates … – conduct of monetary policy. Credibility to central bank actions in the process is achieved by keeping the market expectations …