What is a happiness index?

Isnt a reserve bank just a club of bankers?

How or why should we trust them?

Interesting and I feel sure politicians would agree and do their best, at least at election time to ensure the best relation between the two parameters for happiness.
Richard Layard who worked in the UK on unemployment and inequality, founder of Centre for Economic Performance at the London School of Economics has written a book called Happiness in which he attempts to analyse the factors promoting happiness Penquin 2005.This follows on the finding that in general we are no more happy than previously despite striving for wealth and becoming richer.
His happiness index relates to, in order named using the data from the US general Social Survey, family relationships, financial situation, work, community and friends, health, personal freedom, personal values. Security features in most. So having secure rather than competitive work the rat race is desirable for the individual. Unemployment a disaster to happiness, yet full employment leads to inflation, insecure income.
His book is more interesting than I can convey but I do not know how the profession views the ideas. Certainly governments aim seems more for productivity than happiness. Worth a read.