B0177
Title: Oil news shocks, inflation expectations and social connectedness
Authors: Petre Caraiani - Bucharest University of Economic Studies (Romania) [presenting]
Abstract: While recent work has emphasized that production networks help in the propagation of oil shocks, the role of social connections is emphasized in propagating the effect of oil shocks on inflation expectations. Using a dataset of Euro Area member states, it is shown that social connectedness has a significant role in the propagation of oil shocks on inflation expectations, with the network effects dominating the direct effects. The effects have become stronger in recent years.
