The impact of news on US household inflation expectations

Shih-Kang Chao, Wolfgang Karl Härdle, Jeffrey Sheen, Stefan Trück, Ben Zhe Wang

Analysis of monthly disaggregated data from 1978 to 2016 on US household in ation expectations reveals that exposure to news on in ation and monetary policy helps to explain in ation expectations. This remains true when controlling for household personal characteristics, their perceptions of the e ectiveness of government policies, their expectations of future interest rates and unemployment, and their sentiment levels. We nd evidence of an asymmetric impact of news on in ation expectations particularly after 1983, with news on rising in ation and easier monetary policy having a stronger e ect in comparison to news on lowering in ation and tightening monetary policy.

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Year of publication:	29.05.2017
Authors:	Chao, Shih-Kang ; Härdle, Wolfgang ; Sheen, Jeffrey R. ; Trück, Stefan ; Wang, Ben Zhe
Publisher:	Berlin : SFB 649, Humboldt-Universität zu Berlin
Subject:	Inflation expectations \| news impact \| forecast disagreement \| Inflationserwartung \| Privater Haushalt \| Household \| Prognoseverfahren \| Forecasting model \| Ankündigungseffekt \| Announcement effect \| Prognose \| Forecast \| Schätzung \| Estimation \| USA \| United States

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Extent:	1 Online-Ressource (circa 14 Seiten) Illustrationen
Series:	SFB 649 discussion paper. - Berlin : [Verlag nicht ermittelbar], ISSN 1860-5664, ZDB-ID 2195055-6. - Vol. 2017-011
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Other identifiers:	hdl:10419/169201 [Handle]
Classification:	D83 - Search, Learning, Information and Knowledge ; D84 - Expectations; Speculations ; E31 - Price Level; Inflation; Deflation
Source:	ECONIS - Online Catalogue of the ZBW

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