Monetary Conditions News and Consumer Expectations at the Zero Lower Bound

8 Pages Posted: 11 Oct 2017

See all articles by Jeffrey Sheen

Jeffrey Sheen

Macquarie University; Financial Research Network (FIRN); Macquarie University, Macquarie Business School

Ben Zhe Wang

Macquarie University, Macquarie Business School

Date Written: October 11, 2017

Abstract

Using Michigan Survey of Consumers data from December 2008 to December 2015, we fi nd 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

Sheen, Jeffrey and Wang, Ben Zhe, Monetary Conditions News and Consumer Expectations at the Zero Lower Bound (October 11, 2017). Macquarie University Faculty of Business & Economics Research Paper No. 5/2017. Available at SSRN: https://ssrn.com/abstract=3051073 or http://dx.doi.org/10.2139/ssrn.3051073

Jeffrey Sheen

Macquarie University ( email )

Department of Economics
Macquarie University
Sydney, NSW 2109
Australia
+61 2 9850 7287 (Phone)
+61 2 9850 8324 (Fax)

Financial Research Network (FIRN) ( email )

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

Ben Zhe Wang (Contact Author)

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

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