What People Believe About Monetary Finance and What We Can(’t) Do About It: Evidence from a Large-Scale, Multi-Country Survey Experiment

Cars Hommes, Julien Pinter and Isabelle Salle

Staff Working Papers from Bank of Canada

Abstract: We conduct an experiment within a large-scale household survey on public finance in France, the Netherlands and Italy. We elicit prior beliefs via open-ended questions and introduce a measure of macroeconomic policy literacy. An educational blog post from a central bank (CB) that opposes monetary-financed policies preceded by a short video on public finance can induce less support for monetary-financed proposals and more support for fiscal discipline and CB independence, no matter the respondent’s level of literacy. However, prior beliefs matter, and contradictory information may be polarizing. Information affects the respondents’ views by shifting their inflation and tax expectations associated to these policies.

Keywords: Central bank research; Fiscal policy; Monetary policy (search for similar items in EconPapers)
JEL-codes: C83 E58 E60 E62 E70 G53 H31 (search for similar items in EconPapers)
Pages: 99 pages
Date: 2023-06
New Economics Papers: this item is included in nep-ban, nep-cba, nep-eec, nep-exp, nep-mfd and nep-mon
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: What people believe about monetary finance and what we can(‘t) do about it: Evidence from a large-scale, multi-country survey experiment (2024)
Working Paper: What People Believe about Monetary Finance and What We Can(‘t) Do about It: Evidence from a Large-Scale, Multi-Country Survey Experiment (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:bca:bocawp:23-36

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