Seminar with Professor Michael Weber in the CNB

The Czech National Bank and Czech Economic Society organized a seminar on Effective Monetary Policy Communication: The Role of the Message, Medium, and Messenger with Professor Michael Weber (University of Chicago) on Friday, 25 November 2022. The seminar was chaired by CNB Deputy Governor Marek Mora.

At a seminar hosted by the CNB, Michael Weber discussed inflation expectations, their determinants, impact on the consumption decisions of households and implications for central bank communication. Inflation expectations determine the real interest rate, which is a key variable for decisions on consumption and savings, taking out mortgages, but also wage bargaining. Professor Weber presented the findings of empirical research, according to which inflation expectations are affected by prices of frequently purchased goods and a lower perceived real interest rate increases consumption expenditure. In the next part of his lecture, he presented the results of several studies on the effects of central bank communication on expectations.