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The impact of public knowledge about central bank independence on trust and inflation expectations

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  • Brouwer, Nils
  • De Haan, Jakob

Abstract

We conducted a survey of Dutch households to examine public knowledge of central bank independence. The results suggest that the public knows little about the independence of the European Central Bank (ECB). For instance, many respondents believe the ECB is influenced by the European Commission, EU governments, or financial institutions. Using a randomized controlled trial, we analyzed whether information about the ECB’s independence affects trust in the central bank and inflation expectations. Our experiment revealed that providing this information increased trust in the central bank, particularly among older individuals, individuals knowledgeable about central banks, and individuals who trusted the European Commission less. However, our results also suggest that providing this information does not affect inflation expectations.

Suggested Citation

  • Brouwer, Nils & De Haan, Jakob, 2026. "The impact of public knowledge about central bank independence on trust and inflation expectations," Journal of Economic Behavior & Organization, Elsevier, vol. 241(C).
    • Handle: RePEc:eee:jeborg:v:241:y:2026:i:c:s0167268125004469
    DOI: 10.1016/j.jebo.2025.107329
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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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