Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161657
Authors: 
Beckers, Benjamin
Kholodilin, Konstantin A.
Ulbricht, Dirk
Year of Publication: 
2017
Series/Report no.: 
DIW Discussion Papers 1665
Abstract: 
In this paper, we examine the predictive ability of automatic and expert-rated media sentiment indicators for German inflation. We find that sentiment indicators are competitive in providing inflation forecasts against a large set of common macroeconomic and financial predictors. Sophisticated linguistic sentiment algorithms and business cycle news rated by experts perform best and are superior to simple word-count indicators and autoregressive forecasts.
Subjects: 
inflation prediction
media sentiment indicators
news reports
real-time forecasting
JEL: 
C53
E31
E37
Document Type: 
Working Paper

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