Arbeitspapier

Can central bank communication help to stabilise inflation expectations?

This paper examines whether central bank communication stabilises euro area inflation expectations through the information and news channel. A novelty of the study is its use of data from Google Analytics on ECB website traffic as proxy for visitors' attention to its communication. We conduct several econometric tests with daily data to measure the impact of ECB communication on the information demand of the public and ultimately on inflation expectations. Overall, this study shows that website attention, as captured by search volumes of visitors, influences euro area inflation expectations. We find that increased website attention contributes to narrowing the gap between market-based forecasts and (the mean of) longer-term professional inflation expectations. Our findings add to the theoretical evidence on the existence of an information and news channel.

ISBN
978-92-899-4547-9
Sprache
Englisch

Erschienen in
Series: ECB Working Paper ; No. 2547

Klassifikation
Wirtschaft
Single Equation Models; Single Variables: General
Information, Knowledge, and Uncertainty: General
Monetary Policy
Central Banks and Their Policies
Information and Market Efficiency; Event Studies; Insider Trading
Thema
website attention
high-frequency identification
forward guidance
information demand
information and news channel

Ereignis
Geistige Schöpfung
(wer)
Jung, Alexander
Kühl, Patrick
Ereignis
Veröffentlichung
(wer)
European Central Bank (ECB)
(wo)
Frankfurt a. M.
(wann)
2021

DOI
doi:10.2866/276208
Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Jung, Alexander
  • Kühl, Patrick
  • European Central Bank (ECB)

Entstanden

  • 2021

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