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The impact of populism on central bank communication: Analyzing theoretical developments and the case of Hungary

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  • Maxence Follot

Abstract

This study examines the impact of populism on central bank communication, with a focus on theoretical developments and the specific case of Hungary. Populism, characterised by the opposition between ‘the pure people’ and ‘the corrupt elite’, challenges traditional institutions, including central banks, which are seen as part of the elite due to their unelected technocratic leadership. The rise of populism has led to increased scrutiny and pressure on central banks, which have been forced to adapt their communication strategies in order to maintain credibility and public trust. The analysis explores how central banks are shifting their communication to defend their reputation in response to populist pressures, moving away from traditional roles and toward a focus on predictability and public engagement.

Suggested Citation

  • Maxence Follot, 2024. "The impact of populism on central bank communication: Analyzing theoretical developments and the case of Hungary," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 21(1), pages 65-95, June.
    • Handle: RePEc:liu:liucej:v:21:y:2024:i:1:p:65-95
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    More about this item

    Keywords

    Populism; Central bank communication; Credibility; Monetary policy; Hungary;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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