The 3 E’s of Central Bank Communication with the Public
57 Pages Posted: 17 Jan 2020
Date Written: January 10, 2020
In this paper we explore both theoretical and empirical evidence on communication with the general public. The model provides guidance for policymakers by highlighting some potentially important risks in communicating simply with a broader audience. In particular, in a model where trust and engagement are low, there are benefits to engaging a wider audience. But doing so risks ultimately lowering welfare unless guided by the 3 E’s of public communication: Explanation, Engagement and Education. Central banks have made great strides in all three, but numerous challenges remain.
Keywords: monetary policy, communication, general public
JEL Classification: E52, E58
Suggested Citation: Suggested Citation