Role of the Media in the Inflation Expectation Formation Process

Tetiana Yukhymenko
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Tetiana Yukhymenko: National Bank of Ukraine

No 13-2021, IHEID Working Papers from Economics Section, The Graduate Institute of International Studies

Abstract: This research highlights the role played by the media in the inflation expectations formation process of different types of respondents in Ukraine. Using a large news corpus and machine learning techniques I constructed news-based measures transforming text into quantitative indicators, which reflect news topics relevant to inflation expectations. As such, I found evidence that the different news topics have an impact on inflation expectations and can explain part of their variance. Thus, my results can help understand inflation expectations, especially as anchoring inflation expectations remains a key challenge for central banks.

Keywords: Inflation expectations; natural language processing; textual data; machine learning (search for similar items in EconPapers)
JEL-codes: C55 C82 D84 E31 E58 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2021-06-30
New Economics Papers: this item is included in nep-big, nep-cba, nep-cmp, nep-mac, nep-mon and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:gii:giihei:heidwp13-2021

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