From actual to perceived transparency: The case of the European Central Bank

C.A.B. van der Cruijsen, S.C.W. Eijffinger

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Over the last decades central banks have become much more transparent about their monetary policy making process. In the literature, the increase in central bank transparency has frequently been related to (changes in) the actions of economic actors. However, the fact that these actors might not even be aware of the increased transparency or might not perceive the central bank as any more credible or transparent as a result of it is neglected in the literature. By analyzing data of a Dutch household survey on the (perceived) transparency of the European Central Bank (ECB) we delve into those neglected issues. We find that transparency perceptions matter for inflation perceptions and expectations as well as for trust in the ECB. However, we also show that the link between actual and perceived transparency is weak. Not only because of poor transparency knowledge but also because perceived transparency is influenced by many individual and psychological characteristics.
Original languageEnglish
Pages (from-to)388-399
JournalJournal of Economic Psychology
Volume31
Issue number3
Publication statusPublished - 2010

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European Central Bank
Economic Inflation
transparency
central bank
monetary policy
household survey
Surveys and Questionnaires
Transparency
inflation

Cite this

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title = "From actual to perceived transparency: The case of the European Central Bank",
abstract = "Over the last decades central banks have become much more transparent about their monetary policy making process. In the literature, the increase in central bank transparency has frequently been related to (changes in) the actions of economic actors. However, the fact that these actors might not even be aware of the increased transparency or might not perceive the central bank as any more credible or transparent as a result of it is neglected in the literature. By analyzing data of a Dutch household survey on the (perceived) transparency of the European Central Bank (ECB) we delve into those neglected issues. We find that transparency perceptions matter for inflation perceptions and expectations as well as for trust in the ECB. However, we also show that the link between actual and perceived transparency is weak. Not only because of poor transparency knowledge but also because perceived transparency is influenced by many individual and psychological characteristics.",
author = "{van der Cruijsen}, C.A.B. and S.C.W. Eijffinger",
note = "Appeared earlier as CentER DP 2007-78 (revised title)",
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journal = "Journal of Economic Psychology",
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From actual to perceived transparency : The case of the European Central Bank. / van der Cruijsen, C.A.B.; Eijffinger, S.C.W.

In: Journal of Economic Psychology, Vol. 31, No. 3, 2010, p. 388-399.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - From actual to perceived transparency

T2 - The case of the European Central Bank

AU - van der Cruijsen, C.A.B.

AU - Eijffinger, S.C.W.

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PY - 2010

Y1 - 2010

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AB - Over the last decades central banks have become much more transparent about their monetary policy making process. In the literature, the increase in central bank transparency has frequently been related to (changes in) the actions of economic actors. However, the fact that these actors might not even be aware of the increased transparency or might not perceive the central bank as any more credible or transparent as a result of it is neglected in the literature. By analyzing data of a Dutch household survey on the (perceived) transparency of the European Central Bank (ECB) we delve into those neglected issues. We find that transparency perceptions matter for inflation perceptions and expectations as well as for trust in the ECB. However, we also show that the link between actual and perceived transparency is weak. Not only because of poor transparency knowledge but also because perceived transparency is influenced by many individual and psychological characteristics.

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JO - Journal of Economic Psychology

JF - Journal of Economic Psychology

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