Reaching the public: How direct central bank communication anchors citizens’ inflation expectations

Bogdan Hofbauer

While the inflation expectations of professional forecasters and firms are well anchored around inflation targets, the inflation expectations of citizens tend to be widely dispersed. This column uses a field experiment with 5,000 ECB visitors to show that direct central bank communication, similar to the official ECB press conferences, increases the public’s knowledge of monetary policy and helps align inflation expectations. While non-experts usually hear from central banks via the media, the

Tag-uri: Inflatie