Effective Policy Communication : Targets versus Instruments

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dc.contributor Bank of Finland
dc.contributor.author D'Acunto, Francesco
dc.contributor.author Hoang, Daniel
dc.contributor.author Paloviita, Maritta
dc.contributor.author Weber, Michael
dc.date.accessioned 2020-11-10T09:33:48Z
dc.date.available 2020-11-10T09:33:48Z
dc.date.issued 2020
dc.identifier.isbn 978-952-323-353-9
dc.identifier.issn 1456-6184
dc.identifier.uri https://helda.helsinki.fi/bof/handle/123456789/17721
dc.description.abstract Communication targeting households and firms has become a stand-alone policy tool of many central banks. But which forms of communication, if any, can reach ordinary people and manage their economic expectations effectively? In a large-scale randomized control trial, we show that communication manages expectations when it focuses on policy targets and objectives rather than on the instruments designed to reach such objectives. It is especially the least sophisticated demographic groups, whom central banks typically struggle to reach, who react more to target-based communication. When exposed to target-based communication, these groups are also more likely to believe that policies will benefit households and the economy. Target-based communication enhances policy effectiveness and contributes to strengthen the public’s trust in central banks, which is crucial to ensure the effectiveness of their policies.
dc.format.extent 45
dc.language.iso ENG
dc.rights https://helda.helsinki.fi/bof/copyright
dc.subject rahapolitiikan viestintä
dc.subject.other behavioral macroeconomics
dc.subject.other heterogeneous beliefs
dc.subject.other limited cognition
dc.subject.other expectations formation
dc.subject.other household finance
dc.title Effective Policy Communication : Targets versus Instruments
dc.type Paper
dc.identifier.urn URN:NBN:fi:bof-202011022476
dc.subject.jel D12
dc.subject.jel D84
dc.subject.jel D91
dc.subject.jel E21
dc.subject.jel E31
dc.subject.jel E32
dc.subject.jel E52
dc.subject.jel E65
dc.series.name Bank of Finland Research Discussion Papers
dc.series.year 2020
dc.series.number 17/2020
dc.series.sortingnumber 0017
dc.date.publication 10.11.2020
dc.subject.yso rahapolitiikka
dc.subject.yso keskuspankit
dc.subject.yso viestintä
dc.subject.yso vaikutukset
dc.subject.yso odotukset
dc.subject.yso kotitaloudet (organisaatiot)
dc.subject.yso välineet
dc.subject.yso tavoitteet
dc.subject.yso vaikuttavuus
dc.subject.yso kyselytutkimus
bof-internal.includedInCRIS 1
dc.type.okm D4

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