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Is Monetary Policy Too Complex for the Public? Evidence from the UK

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  • Adriel Jost

Abstract

Central banks have increased their engagement in the information and education of the broad public. But what can be said about the nonprofessional’s knowledge of monetary policy and central banking? Based on the Bank of England’s Inflation Attitudes Survey, I construct a score to capture the central banking knowledge of the respondents. I show that the average British person displays limited knowledge of central banking. At the same time, the data reveal that satisfaction with the Bank of England’s policies increases with a better understanding of monetary policy.

Suggested Citation

  • Adriel Jost, 2017. "Is Monetary Policy Too Complex for the Public? Evidence from the UK," Working Papers 2017-15, Swiss National Bank.
    • Handle: RePEc:snb:snbwpa:2017-15
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    File URL: https://www.snb.ch/en/publications/research/working-papers/2017/working_paper_2017_15
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    References listed on IDEAS

    as
    1. Jonas Meuli & Dr. Thomas Nellen & Dr. Thomas Nitschka, 2016. "Securitisation, loan growth and bank funding: the Swiss experience since 1932," Working Papers 2016-18, Swiss National Bank.
    2. Angela Hung & Joanne Yoong & Elizabeth Brown, 2012. "Empowering Women Through Financial Awareness and Education," OECD Working Papers on Finance, Insurance and Private Pensions 14, OECD Publishing.
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    Cited by:

    1. Alan S. Blinder & Michael Ehrmann & Jakob de Haan & David-Jan Jansen, 2024. "Central Bank Communication with the General Public: Promise or False Hope?," Journal of Economic Literature, American Economic Association, vol. 62(2), pages 425-457, June.
    2. Francesco D’Acunto & Andreas Fuster & Michael Weber, 2021. "Diverse Policy Committees Can Reach Underrepresented Groups," NBER Working Papers 29275, National Bureau of Economic Research, Inc.
    3. Rumler, Fabio & Valderrama, María Teresa, 2020. "Inflation literacy and inflation expectations: Evidence from Austrian household survey data," Economic Modelling, Elsevier, vol. 87(C), pages 8-23.
    4. Mochhoury, Sarah, 2023. "Central bank communication and trust: an experimental study on the European Central Bank and the general public," Working Paper Series 2824, European Central Bank.
    5. Dräger, Lena, 2023. "Central Bank Communication with the General Public," Hannover Economic Papers (HEP) dp-713, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    6. Brouwer, Nils & de Haan, Jakob, 2022. "Trust in the ECB: Drivers and consequences," European Journal of Political Economy, Elsevier, vol. 74(C).
    7. Korhonen, Iikka & Newby, Elisa, 2019. "Mastering Central Bank Communication Challenges via Twitter," BoF Economics Review 7/2019, Bank of Finland.
    8. Haldane, Andrew & Macaulay, Alistair & McMahon, Michael, 2020. "The 3 E’s of central bank communication with the public," Bank of England working papers 847, Bank of England.
    9. Hwang, In Do & Lustenberger, Thomas & Rossi, Enzo, 2021. "Does communication influence executives’ opinion of central bank policy?☆," Journal of International Money and Finance, Elsevier, vol. 115(C).
    10. McMahon, Michael & Haldane, Andrew & Macaulay, Alistair, 2020. "The 3 E’s of Central Bank Communication with the Public," CEPR Discussion Papers 14265, C.E.P.R. Discussion Papers.
    11. Bholat, David & Broughton, Nida & Parker, Alice & Ter Meer, Janna & Walczak, Eryk, 2018. "Enhancing central bank communications with behavioural insights," Bank of England working papers 750, Bank of England.
    12. In Do Hwang & Dr. Enzo Rossi, 2020. "Does communication influence executives' opinion of central bank policy?," Working Papers 2020-17, Swiss National Bank.

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    More about this item

    Keywords

    Economic literacy; Monetary policy; Bank of England;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • 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
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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