Are survey expectations theory-consistent? The role of central bank communication and news

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Authors

In this paper we analyze whether central bank communication can facilitate the understanding of key economic concepts. Using survey data for consumers and professionals, we calculate how many of them have expectations consistent with the Fisher Equation, the Taylor rule and the Phillips curve and test, by accounting for three different communication channels, whether central banks can influence those. A substantial share of participants has expectations consistent with the Fisher equation, followed by the Taylor rule and the Phillips curve. We show that having theory-consistent expectations is beneficial, as it improves the forecast accuracy. Furthermore, consistency is time varying. Exploring this time variation, we provide evidence that central bank communication as well as news on monetary policy can facilitate the understanding of those concepts and thereby improve the efficacy of monetary policy.
OriginalspracheEnglisch
ZeitschriftEuropean Economic Review
Jahrgang85
Seiten (von - bis)84-111
Anzahl der Seiten28
ISSN0014-2921
DOIs
PublikationsstatusErschienen - 01.06.2016
Extern publiziertJa

DOI

Zuletzt angesehen

Publikationen

  1. Who's Hacking Whom?
  2. Special Issue: What do social and environmental responsibilities mean in the ‘Global South’? Towards pluriversal perspectives in management studies
  3. All-affected, Non-identity and the Political Representation of Future Generations: Linking Intergenerational Justice with Democracy
  4. Portfolio
  5. A reversed double movement in Brazil
  6. DaF-Lernen außerhalb des Klassenraums
  7. Evaluation of the toxic effects of four anti-cancer drugs in plant bioassays and its potency for screening in the context of waste water reuse for irrigation
  8. Notting Hill Gate 5
  9. Trouble on my mind
  10. Supplementing Q-method with narratives
  11. The development of sexuality and love
  12. Gender and Diversity aspects in Engineering Education and their impact on the design of engineering curricula
  13. Effect of overlapping audit and compensation committee memberships on the readability of management compensation reports in the German HDAX
  14. Experimental and numerical thermo-mechanical analysis of wire-based laser metal deposition of Al-Mg alloys
  15. Die "Matheasse" in Jena - ein Projekt zur Förderung mathematisch interessierter und (potenziell) begabter Grundschüler
  16. Simulation of the fate of Boscalid and its transformation product 4-Chlorobenzoic acid in a vineyard-terraces catchment
  17. “My Goal Is to Lose 2.923 kg!”—Efficacy of Precise Versus Round Goals for Body Weight Reduction
  18. The Conjuncture of “Corbynism” and the UK Labour Party
  19. Introduction
  20. Effects of Mn and Zn solutes on grain refinement of commercial pure magnesium
  21. Contextual Triggers of Family Conflicts in Folake Amanfo’s Celebrity Marriage and Caliph Uzar’s After Knot
  22. A unique nest-protection strategy in a new species of spider wasp