Central Bank Communication and Public Understanding of Inflation Policy

Abstract

Background: Effective governance of central bank communication depends on more than formal authorization, especially where inflation and institutional coordination are uneven.

Objective: The investigation focused on whether formal arrangements concerning central bank communication translated into consistent practice and how this intersected with inflation.

Methods: A cross-sectional randomized survey experiment was designed with 289 adult participants. Respondents were allocated to alternative policy-information conditions, after which perceived legitimacy, understanding, trust, and intended compliance were measured using standardized scales. Group differences were assessed using regression models adjusted for demographic and institutional covariates.

Results: The clearer communication condition increased both understanding and trust. Relative to the comparison group, the adjusted difference on the primary outcome was 0.20 standard deviations and intended compliance rose by 13%. Gains were largest among participants who began with less familiarity with the policy area.

Conclusion: Across the settings examined, stronger outcomes relating to central bank communication were tied to the institutional arrangements supporting day-to-day implementation. Accordingly, public trust and participation depend on transparent communication, accessible procedures, and visible accountability for implementation.

Study design: survey experiment.

Publication history: Originally published in print on 15 June 2023, Volume 3, Article 14. Online abstract record added on 16 September 2026. Full-text PDF will be added when the digital galley is ready.