Title

Central Bank Communication with the General Public: Promise or False Hope?

Author(s)

Alan S. Blinder Alan Blinder (Princeton University)

Michael Ehrmann Michael Ehrmann (European Central Bank)

Jakob de Haan Jakob de Haan (University of Groningen)

David-Jan Jansen David-Jan Jansen (De Nederlandsche Bank)

Abstract

Central banks are increasingly reaching out to the general public to motivate and explain their monetary policy actions. One major aim of this outreach is to guide inflation expectations; another is to ensure accountability and create trust. This article surveys a rapidly-growing literature on central bank communication with the public. We first discuss why and how such communication is more challenging than communicating with expert audiences. Then we survey the empirical evidence on the extent to which this new outreach does in fact affect inflation expectations and trust. On balance, we see some promise in the potential to inform the public better, but many challenges along the way.

Creation Date

2022-03

Section URL ID

Paper Number

291

URL

https://gceps.princeton.edu/wp-content/uploads/2022/04/wp291_Blinder-et-al_Central-Bank-Communication.pdf

File Function

Jel

D12, D84, E52, E58, G53

Keyword(s)

Banks, Monetary Policy

Suppress

false

Series

3