The impact of readability of the Bank of Russia press releases on infl ation expectations: an experimental approach

Under inflation targeting, the success of monetary policy largely depends on the central bank’s ability to influence inflation expectations through effective communication. Particular importance is attached to interaction with non-specialists, the general public, whose expectations in Russia have historically been elevated and less anchored. This article examines the impact of readability of Bank of Russia press releases on public inflation expectations. Readability is a property of textual material that reflects how easily it can be perceived during reading. To test the hypothesis, the authors conducted a laboratory experiment with 274 participants divided into control and experimental groups. The participants received either original or simplified versions of press releases, with more readable versions generated using generative artificial intelligence. The experiment simulated both easing and tightening monetary policy conditions. The results showed that in the case of an interest rate hike, simplified texts significantly reduced inflation expectations—on average by 1.8–2 percentage points. In the case of a rate cut, the effect was statistically insignificant. Thus, improving the clarity of communication is especially effective in a tight monetary policy context. The findings highlight the need to adapt central bank communication materials for a broad audience. The study concludes that enhancing readability can increase public trust in monetary authorities and strengthen the transmission mechanism of monetary policy. The work relies on methods of experimental economics, textual analysis, and regression modeling, confirming the importance of communication quality in managing inflation expectations.

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