Skip to main content
Authors say bad news has bigger impact on perceptions of inflation
A study of how news media affects inflation expectations in the US finds there is a causal link, but that the effect is stronger when inflation comes in higher than predicted.
The authors – Carola Binder, Pascal Frank and Jane Ryngaert – focus on release days for consumer price index (CPI) reports and assess the degree of “surprise” relative to the consensus forecast. Doing so enables them to control for the fact that people tend to demand more news when inflation is higher.
The authors show that
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com test test test
Most read articles loading…
Back to Top
#News #coverage #affects #inflation #expectations #NBER #paper