Lei, C., Z. Lu, C. Zhang——Economic Systems: News on inflation and the epidemiology of inflation expectations in China
时间:2015-12-01
Inflation expectations are important elements in monetary policy analysis. This paper examines how inflation expectations of Chinese consumers and professional forecasters are affected by media sentiments based on the epidemiological foundations of the sticky information model. Rather than assuming professional forecasts are identical to newspaper forecasts, we assume news media are a common source for the transmission of typical people's inflation expectations. We collect media data from 30 lea