The euro cash changeover, inflation perceptions and the media

Arbeitspapier

In the aftermath of the euro cash changeover consumers' inflation perceptions rose substantially in the euro area countries while actual inflation figures remained almost unchanged. During that period media reporting on the potentially large inflationary effect of the euro introduction intensified. In this paper we argue that the information set of the public has been distorted through the significant slant in the media. Employing an unique dataset for Germany, we provide evidence that media reporting has a statistically significant and economically meaningful impact on inflation perceptions and contributed to their sharp rise in the aftermath of the euro cash changeover.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: KOF Working Papers ; No. 254

Classification and Topics

• Classification: Wirtschaft ; Monetary Policy ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
• Subject: Monetary policy ; inflation perceptions ; media coverage ; media bias ; Geldpolitik ; Euro ; Inflationserwartung ; Medienverhalten ; Öffentliche Meinung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lamla, Michael J. ; Lein, Sarah M.
• Event: Veröffentlichung
• (who): ETH Zurich, KOF Swiss Economic Institute
• (where): Zurich
• (when): 2010

Further information

• DOI: doi:10.3929/ethz-a-005985378
• Handle: http://hdl.handle.net/10419/50362
• Last update: 10.03.2025, 11:44 AM CET