Saskia ter Ellen, Vegard H. Larsen, Leif Anders Thorsrud, 08 December 2020

Though the transmission channels of central bank communication to financial institutions are well researched, less is known about how they relay information to the public at large. This column shows how central bank communication indirectly reaches the general public by affecting news media coverage on topics of particular relevance for monetary policy decisions. The findings suggest that the media, and how it acts as an information intermediary, can have a sizeable effect on economic outcomes.

Jean-Pierre Dube, Andrey Simonov, Szymon Sacher, Shirsho Biswas, 06 July 2020

US televised news networks offer strikingly different coverage of the COVID-19 pandemic, the exposure risks, and the benefits of social distancing measures recommended by health experts. This column devises an empirical strategy to test for a causal effect of news viewership on compliance with social distancing. It finds a large effect of local Fox News viewership on local compliance, with a persuasion rate of up to 26%. These findings reinforce concerns about the media’s role in sowing distrust in scientific evidence in the determination of public policies.  

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