Public releases from central banks are having little effect on consumer behaviour because the public don’t know how to interpret what they’re hearing.
Research co-authored by Associate Professor Saten Kumar from the AUT School of Economics argues that central banks could improve their effect on consumers by implementing a communication strategy that better addresses individuals who are less informed or whose expectations tend to respond more to new information.
The findings were presented at a European Central Bank (ECB) forum in Sintra, Portugal this month.
