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The influence of media use on layperson monetary policy knowledge in Germany

Author

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  • Bernd Hayo
  • Edith Neuenkirch

Abstract

We analyse German citizens’ knowledge about monetary policy and the European Central Bank (ECB), as well as the public's use of mass communication media to obtain information about the ECB. We find that a person's own desire to be informed about the ECB, together with the use of various media channels to keep informed, are decisive for both (1) own perception of knowledge about the ECB and (2) actual level of knowledge. The media†related influence varies with a person's level of education and is stronger for subjective knowledge. Women are significantly less interested in or knowledgeable about both topics.

Suggested Citation

  • Bernd Hayo & Edith Neuenkirch, 2018. "The influence of media use on layperson monetary policy knowledge in Germany," Scottish Journal of Political Economy, Scottish Economic Society, vol. 65(1), pages 1-26, February.
    • Handle: RePEc:bla:scotjp:v:65:y:2018:i:1:p:1-26
    DOI: 10.1111/sjpe.12141
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    References listed on IDEAS

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    1. Author-Name: Alan S. Blinder & Alan B. Krueger, 2004. "What Does the Public Know about Economic Policy, and How Does It Know It?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 35(1), pages 327-397.
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    Cited by:

    1. Bernd Hayo & Florian Neumeier, 2022. "Households’ inflation perceptions and expectations: survey evidence from New Zealand," International Economics and Economic Policy, Springer, vol. 19(1), pages 185-217, February.
    2. Hayo, Bernd & Méon, Pierre-Guillaume, 2023. "Measuring Household Inflation Perceptions and Expectations: The Effect of Guided vs Non-Guided Inflation Questions," Journal of Macroeconomics, Elsevier, vol. 78(C).
    3. Alan S. Blinder & Michael Ehrmann & Jakob de Haan & David-Jan Jansen, 2024. "Central Bank Communication with the General Public: Promise or False Hope?," Journal of Economic Literature, American Economic Association, vol. 62(2), pages 425-457, June.
    4. Hayo, Bernd & Méon, Pierre-Guillaume, 2024. "Preaching to the agnostic: Inflation reporting can increase trust in the central bank but only among people with weak priors," Journal of International Money and Finance, Elsevier, vol. 142(C).
    5. Bernd Hayo & Florian Neumeier, 2018. "Central bank Independence in New Zealand: Public Knowledge About and Attitude Towards the Policy Target Agreement," MAGKS Papers on Economics 201829, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    6. Hayo, Bernd & Neumeier, Florian, 2020. "Public knowledge about and attitudes towards central bank independence in New Zealand," Journal of Banking & Finance, Elsevier, vol. 113(C).
    7. Alexander Jung & Patrick Kuehl, 2021. "Can central bank communication help to stabilise inflation expectations?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(3), pages 298-321, July.
    8. García, Israel & Hayo, Bernd, 2021. "Political budget cycles revisited: Testing the signalling process," European Journal of Political Economy, Elsevier, vol. 69(C).
    9. Bernd Hayo & Edith Neuenkirch, 2018. "Survey on Germans’ Attitudes Towards and Knowledge of Monetary Policy Issues: Documentation of Survey Methodology and Descriptive Results," MAGKS Papers on Economics 201821, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    10. Patrick Hirsch & Lars P. Feld & Ekkehard A. Köhler, 2023. "Breaking Monetary Policy News: The Role of Mass Media Coverage of ECB Announcements for Public Inflation Expectations," CESifo Working Paper Series 10285, CESifo.

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