TY  - RPRT
        AU  - Hack, Lukas
AU  - Rostam-Afschar, Davud
        TI  - Which Macroeconomic News Matters for Price-Setting?
        PY  - 2025/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 17935
        UR  - https://www.iza.org/publications/dp17935
        AB  - We examine how macroeconomic news affects firms’ extensive-margin price-setting plans in a survey that we rolled out with randomized daily invitations. These plans predict future realized inflation. Using a high-frequency event study framework, we find that inflation and employment surprises imply significant and sizable revisions in firms’ pricing plans. There is a limited role for news about the trade balance, but no significant role for other commonly studied data releases, e.g., industrial production. We also study news coverage and agents’ news search behavior, finding that the intensive-margin response of media coverage and news search may partly drive our main results.
        KW  - price-setting
KW  - firms
KW  - daily data
KW  - macroeconomic data releases
        ER  -