The 3 E’s of central bank communication with the public

Staff working papers set out research in progress by our staff, with the aim of encouraging comments and debate.
Published on 03 January 2020

Staff Working Paper No. 847

By Andrew Haldane, Alistair Macaulay and Michael McMahon

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.

PDFThe 3 E’s of central bank communication with the public

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