School of Economics

  Invites you to a

Macroeconomics and Trade seminar presented by

Hibiki Ichiue
(Keio University)

Central Bank Communication
and Households’ Ability to Adjust Spending

 Thursday 3 August 2023

2:00pm – 3.30pm

Level 6 Seminar Room (650)

A02 Social Sciences Building
Camperdown Campus

The University of Sydney NSW 2006

 Zoom: 882 3558 6693

Passcode: 013327

 Central bank communication is regarded as a potential tool to guide households’ inflation expectations, which in turn influence their spending through the intertemporal substitution channel. Based on our theoretical model, we hypothesize that lower-income households are less attentive to information about future inflation, including information from the central bank, since they are less able to adjust spending and thus benefit less from such information. Empirical analysis based on datasets of Japanese household surveys, which include questions about the Bank of Japan, is consistent with this hypothesis. Our result suggests that central bank communication should focus more on those with a greater ability to adjust spending.

For further information contact: Macroeconomics and Trade seminar series coordinator Dr James Graham (james.a.graham@sydney.edu.au)

For all upcoming seminars in School of Economics see Our events and Calendar