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Monetary Policy in the Media
Author(s) -
BERGER HELGE,
EHRMANN MICHAEL,
FRATZSCHER MARCEL
Publication year - 2011
Publication title -
journal of money, credit and banking
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.763
H-Index - 108
eISSN - 1538-4616
pISSN - 0022-2879
DOI - 10.1111/j.1538-4616.2011.00392.x
Subject(s) - credibility , monetary policy , inflation (cosmology) , central bank , monetary economics , media coverage , inflation targeting , economics , private information retrieval , business , political science , computer science , computer security , sociology , media studies , law , theoretical physics , physics
Just like private companies depend crucially on their ability to reach customers, policymakers must communicate with private agents to be successful—and much of this communication is channeled through the media. This is especially true for central banks, which need to build credibility among the general public. This paper analyses how favorably the print media report about the European Central Bank's (ECB) monetary policy decisions. Favorableness is, inter alia , influenced by the amount of information communicated by the ECB. There are, however, also indications of a critical monitoring role of the media, which reports more negatively when inflation exceeds the inflation target.