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Attention to inflation depends on its level
[L’attention à l’inflation dépend de son niveau]

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  • Paul Hubert

Abstract

For central banks to achieve their price stability objective, inflation expectations need to be anchored at the inflation target. The formation of these expectations depends on the amount of attention economic agents pay to inflation. Using data from social media and the press, we show that attention to inflation is not constant and depends on the level of inflation. L’objectif de stabilité des prix des banques centrales passe par des anticipations d'inflation ancrées à la cible d’inflation. La formation de ces anticipations dépend de l’attention que les agents économiques portent à l’inflation. À l’aide de données issues des réseaux sociaux et de la presse, nous montrons que l’attention à l’inflation n’est pas constante et dépend du niveau d’inflation.

Suggested Citation

  • Paul Hubert, . "Attention to inflation depends on its level [L’attention à l’inflation dépend de son niveau]," Eco Notepad (in progress), Banque de France.
  • Handle: RePEc:bfr:econot:340
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