17:13 6 January 2025
Communication strategies shaping inflation expectations
Audiovisual communication significantly influences inflation expectations, with dynamic formats like audio and video proving more effective than static text or images. A survey experiment showed that households exposed to audiovisual messages, such as ECB announcements, adjusted their expectations closer to the 2% inflation target. This effect was stronger among individuals with less economic knowledge.
The study underscores that the communication medium matters and suggests that central banks should incorporate more dynamic media to improve public understanding and trust. Tailoring communication strategies to audience needs can enhance policy credibility, particularly during economic uncertainty. Further research could explore the emotional impact of audiovisual content on public reception of monetary policies.
