The Bank of England’s In ation Attitudes Survey estimates that public knowledge about monetary policy in the UK has remained low and at over the past 17 years, despite the increase in communication by the central bank (Haldane et al 2020).22 Similar results have been found in the United States (Binder 2017).23 This points to a large gap between perception and reality.
Central banks must take responsibility for this gap: if the public does not understand what we are trying to achieve and whether we are succeeding, it is incumbent upon us to explain ourselves better.