Dutch ECB knowledge as holey as their cheeses
When asked about the ECB’s main objective and being given the option to mark statements as true or false, more than 60 percent of Dutch respondents knew the ECB strives for price stability, but close to half of those surveyed also believed it tries to keep unemployment below five percent and more than a third think its primary objective is high economic growth.
“Knowledge about the ECB’s main policy objective is far from perfect,” the study which was carried out last year said.”The average number of correct answers to our eleven statements is less than five.”
The law of averages suggests people would have been better off guessing, although the “I don’t know” option was a popular choice with between a quarter and two-fifths ticking the box depending on the question.
The study also showed that the elderly and married people know less about the ECB’s monetary policy than the young, free and single.
Although there was a willingness to learn, even those who thought they had an adequate knowledge failed to fully understand the ECB’s objective. In general those surveyed claimed to have a much better knowledge of the ECB than they actually did.
The survey also showed people look at inflation in their home country to gauge the ECB’s performance.
“Even when euro area inflation is in line with the ECB’s objective, the ECB can suffer a loss of credibility in countries in the euro area with an inflation rate above 2 percent,” the study by Carin van der Cruijsen, David-Jan Jansen and Jakob de Haan said.