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Today the ECB announced a new package of stimulus measures. There is a lot of talk about the impact of ECB policies on the markets. But how are ECB policy changes received by public in the euro area? @SattlersThomas and I ran a survey experiment to discover it. 1/6
In September 2020, we randomly exposed 7,500 online survey respondents to three possible scenarios about ECB MonPol: 1) no MonPol change; 2) MonPol expansion (i.e., lower rates and more asset purchases); 3) MonPol contraction (i.e., higher rates and less asset purchases). 2/6
Then we asked them several questions about the ECB decision, including their approval and the expected impact, if any, on their country. The results show that, during this crisis period, the European public is receptive to MonPol changes. 3/6
This is especially true in ESP, ITA and FRA, where a majority of respondents is clearly in favour of an expansion of MonPol. The reaction is milder in GER and NED, where there are no significant differences in approval towards different policy stances. 4/6
However, even in GER, respondents are significantly more likely to think that MonPol expansion has a positive sociotropic effect than no change. It seems that today's ECB decision is underpinned by broad societal support. 5/6
It will be interesting to study cross-country variation in egotropic assessments and evaluate the effects of MonPol on individual expectations and preferences, including political ones. More on this in 2021, stay tuned! 6/6
