Monetary Conditions News and Consumer Expectations at the Zero Lower Bound
8 Pages Posted: 11 Oct 2017
Date Written: October 11, 2017
Using Michigan Survey of Consumers data from December 2008 to December 2015, we find U.S. households' interest rate expectations respond to monetary conditions news - in the direction intended by monetary policy, which would be consistent with the signalling channel of unconventional monetary policy. However, our results indicate neither short-term nor medium-term household inflation expectations respond to monetary conditions news.
Keywords: News Impact, Interest Rate Expectations, Inflation Expectations
JEL Classification: C81, D83, D84
Suggested Citation: Suggested Citation