Sweden, Finland and Norway all experienced systemic banking collapses in the early 1990s, which required fiscal support in the vicinity of 5-10 per cent of GDP. In the Asian financial crisis later in the 1990s, Indonesia, Korea and Thailand all needed to provide fiscal support to their banking systems in excess of 30 per cent of GDP.
People also have different preferences, different attitudes regarding inflation, different personal inflation experiences biasing their future expectations.14 Surveys show that knowledge about central bank and monetary policy has a positive impact on trust in the central bank.15 Effective monetary policy communication relies on people having a basic grasp of concepts such as inflation and interest rates.