CENTRAL BANKS AS CATALYSTS FOR ECONOMIC LITERACY: A FRAMEWORK FOR BUILDING SMART CITIZENS
Keywords:
Central Banks, Digital Disruption, Economic Literacy, Participatory Governance, Smart CitizensAbstract
In the digital economic era, economic literacy serves as a critical pillar for financial stability; however, 65% of Indonesia's population lacks understanding of basic monetary concepts. Global central banks face challenges in enhancing economic literacy due to non-participatory educational approaches, digital divides, and misinformation. This study aims to analyze the role of central banks as catalysts for economic literacy, identify determinants of public participation, and formulate a collaborative framework for building adaptive smart citizens. Utilizing a qualitative methodology with content analysis of secondary data, the findings indicate that the efficacy of monetary policy hinges on inclusive digital communication, multi-sector collaboration, and the integration of technologies such as AI in education. The results reveal that public participation increases through gamification and two-way dialogue platforms, while infrastructure gaps and cultural biases emerge as primary barriers. The proposed framework combines digital literacy, participatory governance, and data-driven innovation, recommending a glocal strategy that blends global principles with local contexts. These findings underscore the necessity for central banks to transition from regulatory bodies to proactive educational partners in the era of digital disruption.
Downloads
References
Agarwal, B. (2021). Participatory governance and gender justice: Lessons from India. World Development, 138, 1–12.
Aiyar, Y. (2022). Tokenism in local governance: Evidence from rural India. Journal of Development Studies, 58(4), 567–58.
Allcott, H., & Gentzkow, M. (2017). Social media and fake news in the 2016 election. Journal of Economic Perspectives, 31(2), 211–236.
Andersson, F. N. G., & Jonung, L. (2021). Teaching monetary economics to the public: The Riksbank’s experience. Journal of Economic Education, 52(3), 234–245.
Ariely, D. (2023). Anchoring in consumer decisions: A meta-analysis. Journal of Marketing Research, 60(3), 456–472.
Arnone, M. (2021). Central bank communication in the digital age. Journal of Financial Stability, 57, 1–15.
Arnstein, S. R. (2019). A ladder of citizen participation. In Classic readings in urban planning (pp. 277–288). Routledge.
Bailard, C. S. (2021). Crowdsourcing accountability: ICT and citizen action in Kenya. Comparative Political Studies, 54(2), 312–341.
Bank Indonesia. (2022). Annual report on financial literacy and inclusion.
Bank Indonesia. (2023). Laporan perkembangan literasi keuangan 2023. https://www.bi.go.id
Bank of Thailand. (2023). Digital Baht Education Campaign Report. https://www.bot.or.th
Betsch, C. (2023). Framing vaccine communication: Lessons from behavioral economics. Health Psychology Review, 17(2), 145–160.
Bhargava, S. (2023). Heuristics and biases in financial decision-making. Journal of Behavioral Finance, 24(1), 78–92.
Bherer, L. (2016). The participatory democracy turn: An introduction. Journal of Urban Affairs, 38(5), 727–734.
Bherer, L. (2022). Participatory governance in smart cities: The Barcelona model. Urban Studies, 59(2), 987–1005.
Binder, C. (2023). The challenges of central bank communication in a noisy world. Journal of Monetary Economics, 134, 1–14.
BIS. (2022a). Big data and machine learning in central banking. In BIS Quarterly Review.
BIS. (2022b). Central banks and the digital transformation: Challenges and opportunities.
BIS. (2023). Dynamic communication frameworks for central banks (1145).
Blinder, A. S. (2008). Central bank communication and monetary policy: A survey of theory and evidence. Journal of Economic Literature, 46(4), 910–945.
BMU. (2021). Community solar projects in Germany: A pathway to sustainability.
Bobbio, L. (2021). Participatory delays in pandemic governance: Lessons from Italy. Public Administration Review, 81(3), 476–485.
Born, B. (2021). The signaling channel of central bank communication. Journal of Monetary Economics, 118, 32–47.
Bowen, G. A. (2009). Document analysis as a qualitative research method. Qualitative Research Journal, 9(2), 27–40.
Bryson, J. M. (2022). Hybrid participatory governance in the digital age. Public Management Review, 24(7), 1013–1032.
Buckingham, D. (2021). Media literacy for educators: Integrating critical digital skills into the classroom. MIT Press.
Campbell, J. R. (2017). Forward guidance and macroeconomic outcomes since the financial crisis. NBER Macroeconomics Annual, 31, 283–357.
Carrière-Swallow, Y. (2021). The digitalization of monetary policy communication in Latin America (21/210).
Carvalho, A. (2023). Gamifying monetary policy education: The Brazilian Central Bank Challenge. Central Banking Journal, 33(2), 45–59.
Chilvers, J., & Kearnes, M. (2020). Remaking participation: Science, environment, and emergent publics. Routledge.
Choi, J. (2023). Default effects in green consumer choices. Nature Sustainability, 6(4), 312–319.
Coibion, O. (2022). How do households expect central banks to fight inflation? American Economic Review, 112(6), 1873–1912.
Creswell, J. W., & Poth, C. N. (2018). Qualitative inquiry and research design: Choosing among five approaches (4th ed.). SAGE Publications.
Dearing, J. W., & Cox, J. G. (2018). Diffusion of innovations theory, principles, and practice. Health Affairs, 37(2), 183–190.
DellaVigna, S. (2022). Social norms and charitable giving: Evidence from a field experiment. Journal of Public Economics, 208, 1–15.
Demertzis, M., & Viegi, N. (2023). Central bank communication and market volatility. European Economic Review, 151, 1–18.
Didenko, A. (2023a). Digital tools for central bank communication. Journal of Financial Innovation, 9(1), 112–130.
Didenko, A. (2023b). Triple helix model for economic-digital literacy. Journal of Economic Education, 54(1), 45–60.
Didenko, A., & Buckley, R. (2021). Global coordination of CBDC regulation: A pipe dream? Stanford Journal of Blockchain Law & Policy, 4(2), 89–112.
Dobransky, K., & Hargittai, E. (2022). Digital inequality and disability: Barriers to access. New Media & Society, 24(1), 187–205.
Durose, C. (2022). Gender-responsive participatory budgeting: Case studies from South Africa. Gender & Development, 30(1), 89–106.
ECB. (2022). Euro education initiative: Integrating economic literacy into school curricula.
Edelenbos, J. (2022). Collaborative governance in climate adaptation: The Dutch Room for the River program. Ecology and Society, 27(2), 1–15.
Ehrmann, M. (2022). Central bank transparency: A market efficiency perspective. Journal of International Money and Finance, 128, 1–20.
EU. (2021). Digital finance strategy: Enhancing digital finance literacy.
European Commission. (2022). Climate Citizen: Engaging communities in carbon reduction.
Farrell, D. M. (2020). Deliberative democracy in action: The Irish citizen assemblies. Irish Political Studies, 35(1), 99–117.
Fehr, E., & Schmidt, K. (2023). Fairness and productivity: New experimental evidence. Quarterly Journal of Economics, 138(1), 345–400.
Ferrari, M. (2023). Visual communication in central banking: Evidence from the ECB. Journal of Economic Behavior & Organization, 205, 1–22.
Firman, T. (2022). Participatory budgeting and data literacy in Bandung. Indonesian Journal of Urban Studies, 15(2), 112–130.
Freitas, R. (2023). Beyond tokenism: Power-sharing in participatory governance. Latin American Politics and Society, 65(2), 78–97.
Frydman, C., & Rangel, A. (2023). Loss aversion in retirement savings: Field evidence from Kenya. Journal of Development Economics, 161, 1–20.
Fung, A. (2015). Putting the public back into governance: The challenges of citizen participation and its future. Public Administration Review, 75(4), 513–522.
Furnham, A., & Boo, H. C. (2023). A critical review of psychological theories in consumer behavior. Journal of Applied Psychology, 15(9), 45–67.
Garcia, A. (2021). Smart city adoption challenges in Latin America: A cultural perspective. Urban Studies, 58(5), 987–1005.
GDPR. (2018). General Data Protection Regulation. Official Journal of the European Union, L119, 1–88.
Gigerenzer, G., & Gaissmaier, W. (2022). Heuristic decision-making in finance. Annual Review of Psychology, 73, 1–25.
GPFI. (2021). Global partnership for financial inclusion: Advancing digital literacy in rural communities.
Greenhalgh, T. (2020). Diffusion of innovations in health service organisations: A systematic literature review. Milbank Quarterly, 98(4), 1–45.
Gürkaynak, R. S. (2022). The high-frequency impact of central bank communication. Journal of Financial Economics, 144(2), 443–465.
Haldane, A. (2020). The citizen’s central bank. Bank of England Speech.
Halpern, D. (2023). Nudge units: How behavioral science shapes policy. Public Administration Review, 83(2), 234–248.
Hansen, S. (2023). Multilingual communication in the ECB: Challenges and strategies. European Journal of Political Economy, 77, 1–15.
Helsper, E. J. (2020). The digital skills paradox: How do digitally excluded youth develop skills to use the internet? New Media & Society, 22(6), 1125–1142.
IEA. (2022). Global EV Outlook 2022: Securing supplies for an electric future.
IMF. (2023a). CBDC adoption in emerging economies: Lessons from Nigeria (23/45).
IMF. (2023b). Crypto assets and monetary policy communication (2023/001).
Johnson, E. (2021). Recency bias and stock market behavior. Journal of Financial Economics, 14(3), 789–804.
Jones-Jang, S. M. (2021). How do people judge online privacy risks? Journal of Communication, 71(3), 396–419.
Kalvet, T., & Tiits, M. (2020). Estonia’s digital transformation: Lessons for policymakers. Technological Forecasting & Social Change, 151, 1–12.
Kapoor, K. K. (2018). Advances in diffusion theory and practice: A review of social media and innovation adoption. Journal of Business Research, 95, 442–452.
Karlan, D. (2023). Commitment devices and savings: Evidence from a randomized trial. American Economic Journal: Applied Economics, 15(1), 1–32.
Kiff, J., Alwazir, J., Davidovic, S., Farias, A., Khan, A., Khiaonarong, T., & Zhou, P. (2020). A survey of research on retail central bank digital currency (20/104).
Kiley, M. T. (2021). The global decline in the efficacy of forward guidance. Journal of Money, Credit and Banking, 53(5), 1221–1252.
Kim, H., & Lee, J. (2022). Gamification in financial education: A case study of South Korea’s Smart Citizen Initiative. Journal of Financial Literacy, 18(1), 33–50.
Kim, H., & Lee, J. (2023). Data-driven governance in Seoul: A case study of citizen participation. Cities, 135, 1–14.
Kim, S., & Lee, J. (2023a). E-governance and public trust: Evidence from South Korea. Government Information Quarterly, 40(1), 1–12.
Kim, S., & Lee, J. (2023b). Virtual reality in economic education: A case study of BOK. Journal of Educational Technology, 49(4), 567–582.
Kim, S., & Park, J. (2023). Metaverse applications in public policy education. Journal of Educational Technology, 50(1), 45–60.
Lee, J. (2021). Blockchain for participatory governance: The case of vTaiwan. Policy & Internet, 13(3), 312–331.
Lee, J., & Kim, S. (2020). Mobile banking adoption in emerging markets: A cross-country analysis. Telematics and Informatics, 55, 1–12.
Lee, K. (2023a). Ethical AI in central banking: Risks and solutions. Journal of Financial Regulation, 9(1), 78–95.
Lee, K. (2023b). Ethical AI in public governance: Addressing bias and transparency. Public Administration Review, 83(2), 234–248.
Levin, I. P. (2020). Framing effects in health communication: A meta-analysis. Health Communication, 35(7), 889–901.
Lincoln, Y. S., & Guba, E. G. (1985). Naturalistic inquiry. SAGE Publications.
Maina, C. (2022). Digital inclusion for persons with disabilities in Kenya. African Journal of Disability, 11(1), 1–10.
Mergel, I. (2023). AI in participatory governance: Risks and opportunities. Public Administration Review, 83(1), 45–59.
Ng, W. (2020). A conceptual model of digital citizenship for digital literacy. Education and Information Technologies, 25(4), 2625–2645.
Niemi, H. (2021). Lifelong learning and micro-credentials in Finland. European Journal of Education, 56(3), 456–470.
O’Donoghue, T., & Rabin, M. (2015). Optimal sin taxes. Journal of Public Economics, 122, 127–137.
OECD. (2017). Recommendations on open government.
OECD. (2018). Measuring the digital transformation: A roadmap for the future.
OECD. (2020). Economic literacy and inclusive growth: Policy strategies.
OECD. (2023a). Digital literacy and economic resilience.
OECD. (2023b). Digital literacy initiatives in Southeast Asia.
OECD. (2023c). Future-skills initiatives in Brazil.
OECD. (2023d). The digital economy outlook 2023.
Ogbonna, K. (2023). Central bank communication in politically fragile economies: The case of Nigeria. African Development Review, 35(1), 112–125.
OJK. (2023a). Collaboration with edtech platforms for financial literacy.
OJK. (2023b). Survei Kepercayaan Publik terhadap Inovasi Keuangan Digital. https://www.ojk.go.id
Panetta, F. (2023). Digital euro and public communication. ECB Blog Post.
Pangrazio, L., & Selwyn, N. (2021). Towards a critical data literacies curriculum. Learning, Media and Technology, 46(3), 247–262.
Pariser, E. (2020). The filter bubble: How the new personalized web is changing what we read and how we think. Penguin Books.
RBI. (2022). Digital literacy mission for inclusive finance.
Reuters. (2023). Bitcoin surges 150% in 2023 after brutal 2022. Reuters. https://www.reuters.com
Rizki, A. (2023). BI-Mobile: Enhancing economic literacy through digital platforms.
Rogers, E. M. (2003). Diffusion of innovations (5th ed.). Free Press.
Singh, R. (2020). Barriers to AI adoption in healthcare: A diffusion of innovations perspective. Journal of Medical Systems, 44(9), 1–10.
Smith, G. (2023). Crisis governance and public compliance: Lessons from COVID-19. Public Administration, 101(1), 189–205.
Susha, I. (2022). Digital inequalities in participatory governance: A global perspective. Information, Communication & Society, 25(6), 789–806.
Sveriges Riksbank. (2023). The e-krona pilot and public education.
Szczerbowicz, U., & Makarski, K. (2023). Communicating during crises: Lessons from COVID-19. Journal of Financial Stability, 64, 1–12.
Tan, L. (2022). Digital literacy programs for vulnerable groups: A case study of Singapore. Journal of Adult Education, 49(2), 45–60.
Thaler, R. H., & Sunstein, C. R. (2008). Nudge: Improving decisions about health, wealth, and happiness. Yale University Press.
Tornatzky, L. G., & Klein, K. J. (2021). Innovation characteristics and innovation adoption-implementation: A meta-analysis of findings. IEEE Transactions on Engineering Management, 69(1), 1–15.
Tversky, A., & Kahneman, D. (1974). Judgment under uncertainty: Heuristics and biases. Science, 185(4157), 1124–1131.
Ulu, M., & Aydın, H. (2022). Monetary policy communication failures in emerging markets: The Turkish case. Emerging Markets Review, 51, 1–18.
UNDP. (2020). Inclusive governance for sustainable development.
UNESCO. (2021). Digital literacy for all.
Valente, T. W. (2021). Social networks and diffusion of innovations. Health Education & Behavior, 48(1), 10–14.
Van Deursen, A., & Van Dijk, J. (2017). The digital divide shifts to differences in usage. Computers & Education, 59(3), 737–740.
van Zoonen, L. (2020). Data governance and citizen participation in Amsterdam. Big Data & Society, 7(2), 1–12.
Voogt, J., & Roblin, N. P. (2017). A comparative analysis of digital literacy in education. Computers & Education, 59(3), 737–740.
Wampler, B. (2021). Participatory budgeting: Core principles and key impacts. Journal of Public Deliberation, 17(2), 1–18.
Warschauer, M. (2021). Technology and social inclusion: Rethinking the digital divide. MIT Press.
Wejnert, B. (2019). Integrating social media into diffusion of innovations theory: A conceptual framework. Sociology Compass, 13(9), 1–12.
Whitelaw, S. (2020). Contact tracing apps in pandemic governance. The Lancet Digital Health, 2(12), e658–e659.
World Bank. (2021a). The Global Findex Database 2021: Financial Inclusion. In World Bank. https://www.worldbank.org
World Bank. (2021b). World development report 2021: Data for better lives.
World Bank. (2022a). Bridging the digital divide: Infrastructure and affordability.
World Bank. (2022b). Digital divide and financial inclusion in Africa.
World Bank. (2022c). Digital Divide in El Salvador: Challenges and Opportunities. World Bank. https://www.worldbank.org
Yulianto, H. (2016). Statistik 1. Lembaga Ladang Kata.
Yulianto, H. (2023). Technology of Artificial Intelligence (Ai) in the Education. Virtualeduacademy. https://virtualeduacademy.com/artikel/
Yulianto, H. (2025). Kripto, CBDC, dan Masyarakat Adaptif: Tantangan Bank Sentral di Era Disrupsi Finansial. Kabartren. https://www.kabartren.com/kripto-cbdc-dan-masyarakat-adaptif-tantangan-bank-sentral-di-era-disrupsi-finansial/
Yulianto, H., & Iryani. (2024). Artificial Intelligence Integration in Strategic HRM: A Bibliometric Approach to Enhancing Organizational Performance. International Conference on Management, Entrepreneurship, and Business, 205–227.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Harry Yulianto (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
