 Bias in Economic News: The Reporting of Nominal Exchange Rate Behavior in ColombiaEconomía Journal, 2013, vol. Volume 14 Number 1, issue Fall 2013, 103-153 Abstract: Since 1991, Colombia has had a market-determined Peso–US Dollar Nominal Exchange Rate (NER), after more than 20 years of controlled and multiple exchange rates. The behaviour (revaluation / devaluation) of the NER is constantly reported in the news, editorials, and op-eds of the major newspapers of the nation, with exceptional attention to revaluation. The uneven reporting of revaluation episodes can be explained by the existence of an interest group particularly affected by revaluation, looking to increase awareness and sympathy for help from public institutions. Using the number of news items and op-eds from a major Colombian newspaper, the over-reporting of revaluation episodes (in contrast to devaluation ones) is shown. Secondly, using statistical analysis of text upon the content of the news items, it is also shown that the words “devaluation” and “revaluation” are far apart in the distribution of words within the news; and the word “revaluation” is highly correlated with words related to: public institutions, exporters, and the need for assistance. Finally, the potential policy response to the media bias is explored. Keywords: Media bias; Colombia; Nominal Exchange Rate (NER); Negative Binomial Regression Model (NBRM); probit model. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:col:000425:010918 Access Statistics for this article More articles in Economía Journal from The Latin American and Caribbean Economic Association - LACEA Contact information at EDIRC. |
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