Monetary Policy in the Media

55 Pages Posted: 10 Oct 2006

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: September 2006

Abstract

Media coverage of monetary policy actions is a central channel of a central bank's communication with the wider public, and thus an important factor for its credibility and policy effectiveness. This paper analyses the coverage which ECB monetary policy decisions receive in the print media, and the determinants of its extent and of its favorableness. We find that that the press critically discusses the ECB's policy decisions in the context of prior market expectations and of the inflation environment, and that the media's coverage of decisions is generally highly responsive to ECB communication - in particular its Press Conference on meeting days. However, the paper also finds clear limitations in this regard, thus underlining the critical monitoring role assumed by the media.

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

JEL Classification: E52, E58

Suggested Citation

Berger, Helge and Ehrmann, Michael and Fratzscher, Marcel, Monetary Policy in the Media (September 2006). ECB Working Paper No. 679, Available at SSRN: https://ssrn.com/abstract=931350

Helge Berger (Contact Author)

Free University Berlin - Department of Economics ( email )

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+49 30 838-52782 (Fax)

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 )

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Germany
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+49 69 1344/6000 (Fax)

Bank of Canada ( email )

234 Wellington Street
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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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