Open access
Datum
2008-06Typ
- Working Paper
ETH Bibliographie
yes
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Abstract
This paper analyzes the impact of the media on consumers' inflation expectations. We distinguish two channels through which media can influence expectations. First, the intensity of news coverage on inflation plays a role (volume channel). Second, the content of these reports matters (tone channel). Employing a unique data set capturing media reports on inflation in Germany comprising 01/1998-12/2006 we are able to discriminate between these two effects. We find that the volume effect generally improves the accuracy of consumer forecasts while the tone channel induces a media bias. Mehr anzeigen
Persistenter Link
https://doi.org/10.3929/ethz-a-005640674Publikationsstatus
publishedZeitschrift / Serie
KOF Working PapersBand
Verlag
KOF Swiss Economic Institute, ETH ZurichThema
Media bias; MASS COMMUNICATION + MASS MEDIA (SOCIOLOGY); INFLATION; MASSENKOMMUNIKATION + MASSENMEDIEN (SOZIOLOGIE); Expectation formation; Monetary policy; Media coverageOrganisationseinheit
03716 - Sturm, Jan-Egbert / Sturm, Jan-Egbert
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
ETH Bibliographie
yes
Altmetrics