Forward guidance and the semiotic turn of the European Central Bank

This article discusses central bank forward guidance as a performative (Austin) and conative (Jakobson) practice–hence, as a form of audience-centred communication that intends to transform their behaviour when deployed by a narrator who is simultaneously also a character in the story Taking the European Central Bank (ECB) as its primary example, the article conveys how the double role of narrator and character assumed by this institution renders it more permeable to reactions from the markets and the public As such, ECB forward guidance is frequently misguided, with its communicative imperatives indeed being ‘corrected’ and ‘reoriented’ by market actors and publics wishing to perceive the European Central Bank as behaving like an impartial and just frontline hero While acknowledging the presence of conversational features within these reflexive communication practices, the article approaches forward guidance as an unfolding story, not only due to the relevance of the characterisation processes through which the European Central Bank is repositioned as hero or villain by its publics, but also because exemplary episodes exhibit a reminiscent quality that isolates them from their original context and opens them up to the possibility of re-activation–as indeed happened during the recent Covid-19 pandemic crisis © 2021 Informa UK Limited, trading as Taylor & Francis Group