Professor Kočenda published an article in the Journal of Money, Credit and Banking
Professor Kočenda published an article in the Journal of Money, Credit and Banking
Evžen Kočenda and Julien Pinter have published an article titled Media Treatment of Monetary Policy Surprises and Their Impact on Firms' and Consumers' Expectations in the Journal of Money, Credit and Banking.
The authors explore how the media shape public understanding of monetary policy. Using European Central Bank announcements and detailed reports from two main general newspapers in France, they show that financial market “surprises” often do not appear as such in the news—about 85% are either ignored or reported with the opposite sign. When they focus only on policy surprises that the media present consistently, both firms and consumers adjust their expectations in response. The tone of coverage also matters because negative reporting leads consumers to interpret even expansionary policy as bad news. The results suggest that monetary policy influences the economy not only through financial markets, but also through how the media frame and explain central bank decisions.
