In this paper we analyze high-frequency movements in Swiss asset markets in reaction to real-time communication by the Swiss National Bank. Our analysis of central bank communication encompasses monetary policy announcements, speeches and interviews. We examine the reactions of the currency...

The deficit bias, inherent in the single European democracies and magnified in the framework of a monetary union, calls for additional budget discipline to be enforced throughout Europe. In the terms in which it has been signed, however, the Growth and Stability Pact does not appear to be a...