Monetary Policy in the Media

27 Pages Posted: 31 Jan 2011

See all articles by Helge Berger

Helge Berger

Free University Berlin - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Michael Ehrmann

European Central Bank (ECB); Bank of Canada

Marcel Fratzscher

DIW Berlin; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: January 2011

Abstract

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 because the effectiveness of monetary policy depends to a large degree on their credibility among the general public. Using the case of the European Central Bank (ECB), the paper analyses the favorableness with which monetary policy decisions are reported upon in the print media. We find that media coverage is, among other things, influenced by the amount of information communicated by the ECB. There are, however, also indications of a critical monitoring role assumed by the media, which tends to report more negatively on ECB policy decisions when inflation exceeds the inflation target.

Keywords: communication, coverage, ECB, media, monetary policy, press

JEL Classification: E52, E58

Suggested Citation

Berger, Helge and Ehrmann, Michael and Fratzscher, Marcel, Monetary Policy in the Media (January 2011). CEPR Discussion Paper No. DP8192, Available at SSRN: https://ssrn.com/abstract=1749813

Helge Berger

Free University Berlin - Department of Economics ( email )

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HOME PAGE: http://www.wiwiss.fu-berlin.de/berger/eng_index.htm

CESifo (Center for Economic Studies and Ifo Institute for Economic Research) ( email )

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

Michael Ehrmann

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
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Germany
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Bank of Canada ( email )

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Canada

Marcel Fratzscher

DIW Berlin ( email )

Mohrenstra├če 58
Berlin, 10117
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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