Anyone who’s followed TVHE for a while will enjoy Gillian Tett’s discussion of the skills needed by central bankers:
Rather than operating the controls, moreover, central bankers also try to control economic outcomes by using words, not merely to influence price and interest rate expectations but to shape the mood. Thus the seemingly dry ritualistic texts that are issued each month – and supplemented by sober speeches – no longer merely describe policy; they are creating it too. Words are the weapon.
[It] suggests that we all need to spend more time reflecting on the implicit social contract and cultural messages in central bank statements. …The next Fed chair needs to be a masterful storyteller and cultural analyst, who can read social sentiment, shape norms, (re) create trust and persuade us all.