KOF Working Papers, KOF Swiss Economic Institute, ETH Zurich 334
While there is ample evidence how central bank communication and interest rate decisions are perceived by financial markets, insights regarding the response of the public is lacking. Media is known to be an important transmitter of news to the public. Based on articles in the Financial Times Europe, we test how expectations on the future course of monetary policy presented in the media are affected by central bank communication and interest rate decisions.
European Central Bank monetary policy announcements central bank communication media expectations