The 3 E’s of Central Bank Communication with the Public

57 Pages Posted: 17 Jan 2020

See all articles by Andrew Haldane

Andrew Haldane

Bank of England

Alistair Macaulay

University of Oxford - Nuffield College

Michael McMahon

University of Oxford

Date Written: January 10, 2020

Abstract

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

Haldane, Andrew and Macaulay, Alistair and McMahon, Michael, The 3 E’s of Central Bank Communication with the Public (January 10, 2020). Bank of England Working Paper No. 847, January 2020, Available at SSRN: https://ssrn.com/abstract=3520658 or http://dx.doi.org/10.2139/ssrn.3520658

Andrew Haldane (Contact Author)

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Alistair Macaulay

University of Oxford - Nuffield College ( email )

Oxford
United Kingdom

Michael McMahon

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

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