Do Federal Reserve Communications Help Predict Federal Funds Target Rate Decisions?

We explain federal funds target rate decisions using macroeconomic variables and Federal Reserve communication indicators. Econometrically, we employ an ordered probit model of a Taylor rule to predict 75 target rate decisions between 1998 and 2006. We find, first, that our communication indicators...

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Bibliographic Details

Published in:	MAGKS - Joint Discussion Paper Series in Economics (Band 25-2009)
Main Authors:	Hayo, Bernd, Neuenkirch, Matthias
Format:	Work
Language:	English
Published:	Philipps-Universität Marburg 2009
Subjects:	Interest Rate Decision, Monetary Policy Wirtschaft Central Bank Communication Federal Funds Target Rate Federal Reserve Bank Taylor Rule Economics
Online Access:	PDF Full Text
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