bibtype V - Research Report
ARLID 0556327
utime 20231122150501.2
mtime 20220405235959.9
title (primary) (eng) Media Treatment of Monetary Policy Surprises and Their Impact on Firms’ and Consumers’ Expectations
publisher
place Praha
name Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague
pub_time 2021
specification
page_count 55 s.
edition
name IES Working Papers
volume_id 30/2021
keyword firm expectations
keyword consumer expectations
keyword monetary policy surprises
keyword European Central Bank
keyword information effect
author (primary)
ARLID cav_un_auth*0428400
name1 Pinter
name2 J.
country PT
author
ARLID cav_un_auth*0312139
name1 Kočenda
name2 Evžen
institution UTIA-B
full_dept (cz) Ekonometrie
full_dept Department of Econometrics
department (cz) E
department E
full_dept Department of Econometrics
country CZ
fullinstit Ústav teorie informace a automatizace AV ČR, v. v. i.
source
url http://library.utia.cas.cz/separaty/2022/E/kocenda-0556327.pdf
cas_special
abstract (eng) We empirically investigate whether monetary policy announcements affect firms’ and consumers’ expectations by taking into account media treatments of monetary policy announcements. To identify exogenous changes in monetary policy stances, we use the standard financial monetary policy surprise measures in the euro area. We then analyze how a general newspaper and a financial newspaper (Le Monde and The Financial Times) report on announcements. We find that 87 % of monetary policy surprises are either not associated with the general newspaper reporting a change in the monetary policy stance to their readers or have a sign that is inconsistent with the media report of the announcement. When we use the raw monetary policy surprises variable as an independent variable in the link between monetary policy announcements and firms’/consumers’ expectations, we mostly do not find, in line with several previous studies, any statistically significant association. When we take only monetary policy surprises that are consistent with the general newspaper report, in almost all cases we find that monetary policy surprises on the immediate monetary policy stance do affect expectations. Surprises related to future policy inclination and information shocks usually do not appear to matter. The results appear to be in line with rational inattention theories and highlight the need for caution in the use of monetary policy surprise measures for macroeconomic investigations.
RIV AH
FORD0 50000
FORD1 50200
FORD2 50202
reportyear 2023
num_of_auth 2
mrcbC52 4 A 4a 20231122150501.1
inst_support RVO:67985556
permalink http://hdl.handle.net/11104/0330840
confidential S
arlyear 2021
mrcbTft \nSoubory v repozitáři: 0556327.pdf
mrcbU10 2021
mrcbU10 Praha Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague