Using the variation in national television news of four major member states in the Eurozone, we find causal effects of coverage of high-frequency identified monetary policy announcements on households’ inflation expectations in an event study and a generalized Difference-in-Differences...

We explore the consequences of losing confidence in the price-stability objective of central banks by quantifying the inflation and deflationary biases in inflation expectations. In a model with an occasionally binding zero-lower-bound constraint, we show that an inflation bias as well as a...

This paper provides a critical review of the popular Carlson-Parkin (CP) quantification method using household-level data from the University of Michigan’s Survey of Consumers. We find strong evidence against the threshold constancy, symmetry, homogeneity, and the overall unbiasedness...