IDEAS home Printed from
   My bibliography  Save this article

What Determines the Credibility of the Central Bank of Israel in the Public Eye?


  • Zeev Kril

    (Ben Gurion University of the Negev)

  • David Leiser

    (Ben Gurion University of the Negev)

  • Avia Spivak

    (Ben Gurion University of the Negev)


In line with the rational expectations approach, economists emphasize transparency as a key factor for central banks’ credibility. In this paper, a psychological approach yields different results: trust in the banks’ policy is associated with the professionalism and independence of the bank and not with its transparency. It is a subtle difference: transparency is indeed a positive factor in the overall perception of the bank as trustworthy, but a statistical analysis shows that not all aspects of perception are relevant to trust in the bank’s credibility in its inflationary policy.

Suggested Citation

  • Zeev Kril & David Leiser & Avia Spivak, 2016. "What Determines the Credibility of the Central Bank of Israel in the Public Eye?," International Journal of Central Banking, International Journal of Central Banking, vol. 12(1), pages 67-93, March.
  • Handle: RePEc:ijc:ijcjou:y:2016:q:1:a:3

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Isabelle Salle, 2013. "Ciblage de l'inflation, transparence et anticipations – une revue de la littérature récente," Revue d'économie politique, Dalloz, vol. 123(5), pages 697-736.
    2. Alan S. Blinder, 2000. "Central-Bank Credibility: Why Do We Care? How Do We Build It?," American Economic Review, American Economic Association, vol. 90(5), pages 1421-1431, December.
    3. Armand Fouejieu & Scott Roger, 2013. "Inflation Targeting and Country Risk; An Empirical Investigation," IMF Working Papers 13/21, International Monetary Fund.
    4. Gaffeo, Edoardo & Canzian, Giulia, 2011. "The psychology of inflation, monetary policy and macroeconomic instability," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(5), pages 660-670.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Leiser, David & Benita, Rinat & Bourgeois-Gironde, Sacha, 2016. "Differing conceptions of the causes of the economic crisis: Effects of culture, economic training, and personal impact," Journal of Economic Psychology, Elsevier, vol. 53(C), pages 154-163.
    2. Karoline S. Rogge & Elisabeth Dütschke, 2017. "Exploring Perceptions of the Credibility of Policy Mixes: The Case of German Manufacturers of Renewable Power Generation Technologies," SPRU Working Paper Series 2017-23, SPRU - Science and Technology Policy Research, University of Sussex.
    3. repec:mnb:finrev:v:16:y:2017:i:2:p:64-85 is not listed on IDEAS

    More about this item

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ijc:ijcjou:y:2016:q:1:a:3. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bank for International Settlements). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.