Postrzeganie banku centralnego przez sektor prywatny – ewolucja koncepcji
Private Sector Perceptions of the Central Bank – The Evolution of Concepts

Author(s): Tomasz Łyziak, Joanna Mackiewicz-Łyziak
Subject(s): National Economy
Published by: Wydawnictwa Uniwersytetu Warszawskiego
Keywords: central bank; monetary policy; credibility; trust; anchoring of inflation expectations
Summary/Abstract: In this chapter we show that the role of public perception of the central bank has undergone a clear evolution in economic theory and empirical research. It is reflected in the concepts of central bank credibility, anchoring of inflation expectations, and the trust in the central bank. This evolution has meant a gradual expansion of both the range of measures of inflation expectations that are considered and the features of these expectations that are tested. In a simple new Keynesian model, we show that for the effectiveness of monetary policy and limiting its costs in terms of fluctuations in output and employment, it is important to anchor not only inflation expectations, but also expectations regarding economic activity. The concept of trust in the central bank understood in this way is therefore of great practical importance and should become the subject of equally broad and in-depth research that has concerned the concept of anchoring inflation expectations in recent years.

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