How do you explain inflation?
There could be lots of different routes you could take to explain it, and the Bank of Jamaica is marching to the beat of its own drum.
Central banks play a key role in a nation’s economy and in stabilising the financial system. The Reserve Bank of Australia sets the official interest rate every month, which affects people’s home loans, savings, stocks, businesses, and even travel plans.
But it doesn’t mean that there’s a widespread understanding of what the RBA does.
Related story: Yes, the RBA will cut interest rates again – but when?
The issue of communication with the public is one that is evidently at the forefront of Jamaica’s mind.
In a bid to generate greater awareness of the country's new monetary policy of “low and stable” inflation, the RBA’s Jamaican counterpart has turned to reggae music to get the message across:
“High inflation is a wicked thing / and we must abolish it like slavery.
“And we want inflation low so we can plan and prosper.
“But if it drop too low, we cannot grow.”
“All the high prices that mean me harm / They can go back to where they came from.”
How does the RBA communicate with the public?
The RBA articulates its views in a number of ways, such as their monthly statements about their cash rate decision, as well as maintaining an active presence on Facebook, Twitter, Youtube, and LinkedIn.
But whether they’ll take a leaf out of Jamaica’s book is yet to be determined.
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