ECB takes aim at journalists: 'Excessive focus on inflation affects expectations and the economy'

Brussels – If inflation and the cost of living are rising, it is also the fault of journalists, as they discuss it excessively, fueling panic and concern, the European Central Bank said in a specific analytical study targeting the regular reporting of newspapers, radio, and TV. The title of the report, Monitoring Attention to Inflation in the News is as singular as it is dangerous, because, in fact, it invites journalists not to do their job, in defiance of the freedom of the press that should guide the EU in its foundations.

“The degree of attention people devote to inflation can affect inflation expectations, the pass-through of shocks to inflation and the transmission of monetary policy,” the ECB analysts write. Translated: the less we talk about inflation, the better. It is a thesis supported by the observation that “News coverage has been found to shape consumers’ perceptions and expectations, as households rely on the media to stay informed about price developments.” Another point highlighted, which does sound like a compliment, is “In addition, news data are available at high frequency and in a timely manner.”

https://www.eunews.it/2021/09/23/comitato-economico-e-sociale-liberta-di-stampa/

Journalists, therefore, are guilty of doing their job; moreover, in their most straightforward and most basic version, that of reporting. Regarding the dynamics of price increases, the ECB itself produces a wealth of data, bulletins, speeches, and press conferences, with the media simply reporting on it all for the benefit of the community. In Frankfurt, however, they don’t seem to think so, since they are keen to point out, in black and white, that “the level of attention shapes how inflation expectations are formed, which are central to price and wage dynamics.” A message that sounds like “let us work in peace, and stop with your articles and services.”

Media coverage “remains higher than the levels observed prior to the inflation surge,” they complain in Frankfurt. “This may reflect inflation rates for certain items, such as food, that are still higher than pre-pandemic levels, as well as the longer-lasting effects of the most pronounced inflationary episode in recent euro area history on Europeans’ collective memory.” The warning, because that is what it is, is that “Such enduring attention could have implications for how future shocks propagate through the economy.“

The ECB publication comes one month after the European Parliament passed new measures to make it more complicated for journalists to enter the institution and do their work. Taken together, these measures present a broader picture, contrary to democratic principles and the rule of law. It is the European Union, despite many proclamations, that is slipping further and further towards more authoritarian models.

English version by the Translation Service of Withub