Preaching to the agnostic: Inflation reporting can increase trust in the central bank but only among people with weak priors

Bernd Hayo and Pierre-Guillaume Méon

Journal of International Money and Finance, 2024, vol. 142, issue C

Abstract: Using a survey experiment, we study whether showing German respondents a graph representing the European Central Bank’s inflation target alongside euro area inflation from 1999 to 2017 affects respondents’ trust in the ECB. On average, the treatment has no significant effect. However, it does increase trust in the ECB among respondents with no entrenched views, proxied by those who report no preference for any political party. Within this group, information about the actual path of the inflation rate, rather than information about the inflation target itself, appears to be the main driver of the treatment’s effect.

Keywords: Central bank trust; European Central Bank; Central bank communication; Monetary policy; Germany; Household survey; RCT (search for similar items in EconPapers)
JEL-codes: E52 E58 Z1 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (7)

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Related works:
Working Paper: Preaching to the Agnostic: Inflation Reporting Can Increase Trust in the Central Bank but Only among People with Weak Priors (2023)
Working Paper: Preaching to the agnostic: Inflation reporting can increase trust in the central bank but only among people with weak priors (2023)
Working Paper: Preaching to the agnostic: Inflation reporting can increase trust in the central bank but only among people with weak priors (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:142:y:2024:i:c:s026156062400024x

DOI: 10.1016/j.jimonfin.2024.103037

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