Interest Rate Expectations in the Media and Central Bank Communication

KOF Working Papers No. 334

20 Pages Posted: 8 Mar 2013

See all articles by Michael J. Lamla

Michael J. Lamla

ETH Zurich - KOF Swiss Economic Institute; University of Essex

Jan-Egbert Sturm

KOF Swiss Economic Institute, ETH Zurich; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: March 7, 2013

Abstract

While there is ample evidence how central bank communication and interest rate decisions are perceived by financial markets, insights regarding the response of the public is lacking. Media is known to be an important transmitter of news to the public. Based on articles in the Financial Times Europe, we test how expectations on the future course of monetary policy presented in the media are affected by central bank communication and interest rate decisions.

Keywords: European Central Bank, monetary policy announcements, central bank communication, media expectations

JEL Classification: E52, E58

Suggested Citation

Lamla, Michael J. and Sturm, Jan-Egbert, Interest Rate Expectations in the Media and Central Bank Communication (March 7, 2013). KOF Working Papers No. 334. Available at SSRN: https://ssrn.com/abstract=2229779 or http://dx.doi.org/10.2139/ssrn.2229779

Michael J. Lamla

ETH Zurich - KOF Swiss Economic Institute ( email )

Zurich
Switzerland

University of Essex ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

Jan-Egbert Sturm (Contact Author)

KOF Swiss Economic Institute, ETH Zurich ( email )

Zurich
Switzerland

HOME PAGE: http://www.kof.ethz.ch

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, 81679
Germany

HOME PAGE: http://www.cesifo.de

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