Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/198824 
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper No. 7464
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We study how different forms of communication influence the inflation expectations of individuals in a randomized controlled trial. We first solicit individuals’ inflation expectations in the Nielsen Homescan panel and then provide eight different forms of information regarding inflation. Reading the actual Federal Open Market Committee (FOMC) statement has about the same average effect on expectations as simply being told about the Federal Reserve’s inflation target. Reading a news article about the most recent FOMC meetings results in a forecast revision which is smaller by half. Our results have implications for how central banks should communicate to the broader public.
Subjects: 
expectations management
inflation expectations
surveys
communication
randomized controlled trial
JEL: 
E31
C83
D84
Document Type: 
Working Paper
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