Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/271929 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10285
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Using the variation in national television news of four major member states in the Eurozone, we find causal effects of coverage of high-frequency identified monetary policy announcements on households' inflation expectations in an event study and a generalized Difference-in-Differences approach with stacked data. If a monetary policy decision receives news coverage, the adaptation of inflation expectations is stronger than without coverage. Second, we find that coverage of 'delphic' monetary policy announcements, which are primarily informational in nature, leads to an inverse adjustment, i.e., expansionary shocks lead to households lowering their inflation expectations, as opposed to coverage of a textbook, 'odyssean', monetary policy shock.
Subjects: 
inflation expectations
media coverage
transmission of monetary policy
quasi-experimental evidence
JEL: 
E31
E52
E58
C83
D84
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.