Inflation News Coverage, Expectations and Risk Premium

Perico Ortiz H (2023)


Publication Language: English

Publication Type: Other publication type

Publication year: 2023

URI: https://www.iwf.rw.fau.de/files/2023/10/05_2023.pdf

Abstract

This paper investigates the effects of inflation news coverage on market-based in-
flation expectations and outcomes in the inflation-protected securities market. We
employ a large corpus of news headlines from top U.S. newspapers and market data
on the U.S. yield curve and inflation-protected securities. Our results indicate that
news coverage, particularly regarding specific topics, exerts a significant influence
on inflation compensation, expectations, and risk premiums. We observe that the
impact of news diminishes as the maturity increases and varies across different news
topics. This study contributes to the understanding of media influence on financial
markets, specifically in shaping inflation expectations.

Authors with CRIS profile

How to cite

APA:

Perico Ortiz, H. (2023). Inflation News Coverage, Expectations and Risk Premium.

MLA:

Perico Ortiz, Hector. Inflation News Coverage, Expectations and Risk Premium. 2023.

BibTeX: Download