Inflation attention and expectations

Today’s post by Jacques Quass De Vos shows that inflation-related news coverage correlates with inflation expectations, suggesting that high levels of news coverage of inflation may contribute to stronger propagation of inflation shocks to wage demands and price setting behaviour.

This suggests that the degree of public inflation attention may influence the effectiveness of monetary policy transmission (see here and here for international evidence).

Codera Blog Newsletter

Sign up to receive a weekly summary of our blog posts

Check your inbox for a confirmation email