The role of media for consumers' inflation expectation formation

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Authors

The full-information rational expectations model is clearly rejected by the data. The expectation formation process has therefore important implications for macroeconomic outcomes. We examine how consumers react to information provided by the media, by taking into account that this information is imperfect. We show that information rigidities play a role empirically. Intensive news reporting improves the accuracy of consumers’ inflation expectations, because they receive more information. However, this effect depends on the tone of the news. If news are badly toned, the effect reverts.
OriginalspracheEnglisch
ZeitschriftJournal of Economic Behavior and Organization
Jahrgang106
Seiten (von - bis)62-77
Anzahl der Seiten16
ISSN0167-2681
DOIs
PublikationsstatusErschienen - 10.2014
Extern publiziertJa

DOI

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Forschende

  1. Maik Walpuski

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