Economic expectations of financial sector agents in the context of central bank communication policy

Abstract

Estimating the economic expectations of financial sector agents makes an invaluable contribution to the development of the country's monetary system. With the help of communication policy, the central banks of the world and Ukraine, in particular, are able to analyze the current state of the financial market and future expectations on a number of issues. Gathering information is an important part of managing the economic expectations of financial sector agents. Different channels and communication tools are used for this purpose. In addition, they are constantly being improved. The complexity of researching economic expectations can be explained by their dependence on many factors, one of which is the ability of respondents to evaluate changes in the economy and provide answers that will not depend on their impulsiveness and impartiality of thought. Central bank transparency and communication play an important role in managing inflation expectations as they can reduce asymmetric information between the central bank and the public. Economic agents use all available information to form their expectations, and therefore, central bank communications play a key role in shaping those expectations.

Keywords

• communication policy
• economic expectations
• financial sector agents
• inflation expectations
• consumer confidence index
• business expectation index