Publikationsserver
Managing Financial Market Expectations: The Role of Central Bank Transparency and Central Bank Communication
In this paper, we study the influence of central bank transparency and informal central bank communication on the formation of money market expectations. The sample covers nine major central banks from January 1999 to July 2007. We find, first, that transparency reduces the bias in money market expe...
Na minha lista:
| Publicado no: | MAGKS - Joint Discussion Paper Series in Economics (Band 28-2010) |
|---|---|
| Autor principal: | |
| Formato: | Arbeit |
| Idioma: | inglês |
| Publicado em: |
Philipps-Universität Marburg
2010
|
| Assuntos: | |
| Acesso em linha: | Texto Completo em Formato PDF |
| Tags: |
Adicionar Tag
Sem tags, seja o primeiro a adicionar uma tag!
|
| Resumo: | In this paper, we study the influence of central bank transparency and informal central bank communication on the formation of money market expectations. The sample covers nine major central banks from January 1999 to July 2007. We find, first, that transparency reduces the bias in money market expectations and dampens their variation. Second, informal communications help manage financial market expectations by reducing the variation of expectations. Third, various subcategories of the Eijffinger and Geraats (2006) transparency index lead to a smaller bias in expectations (in particular, evaluation of policy outcome and explanation of interest rate decisions) and to a reduction in the variation of expectations (in particular, explicit prioritization of objectives and provision of information on unanticipated macroeconomic disturbances). |
|---|---|
| Descrição Física: | 29 Seiten |
| ISSN: | 1867-3678 |
| DOI: | 10.17192/es2024.0058 |