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Central banks have used different types of forward guidance, where the forward guidance horizon is related to a state contingency, a calendar date or left open-ended. This paper reports cross-country evidence on the impact of these different types of forward guidance on the sensitivity of bond...
Persistent link: https://www.econbiz.de/10012872234
Despite substantial differences in monetary policy and communication strategies, many central banks share the practice … of purdah, a self-imposed guideline of abstaining from communication around policy meetings or other important events … information precisely when it is sought after intensely. However, imposing such a limit to communication has often been justified …
Persistent link: https://www.econbiz.de/10011604914
to revert to other types of Fed communication in the inter-meeting periods, and come to their own assessment of the …
Persistent link: https://www.econbiz.de/10011604503
The paper assesses the communication strategies of the Federal Reserve, the Bank of England and the European Central … Bank and their effectiveness. We find that the effectiveness of communication is not independent from the decisionmaking … process in the committee. The paper shows that the Federal Reserve has been pursuing a rather individualistic communication …
Persistent link: https://www.econbiz.de/10011604534
The paper shows that central bank communication is a key determinant of the market’s ability to anticipate monetary … policy decisions and the future path of interest rates. Comparing communication policies by the Federal Reserve, the Bank of …, individualistic communication regarding the economic outlook is found to be beneficial for the Federal Reserve, enabling market …
Persistent link: https://www.econbiz.de/10011604603
such communication has the ability to move financial markets. The findings suggest that communication is generally seen as … so prior to interest rate changes. At the same time, markets react more strongly to communication prior to policy changes …. Other instances where communication becomes more intense, or where financial markets become more responsive are also …
Persistent link: https://www.econbiz.de/10011604611
Press releases announcing and explaining monetary policy decisions play a critical role in the communication strategy …
Persistent link: https://www.econbiz.de/10012962430
Monetary policy communication is particularly important during unconventional times, because high uncertainty about the … predictability of policy actions. We study how monetary policy communication should and has worked under such circumstances. Our main …
Persistent link: https://www.econbiz.de/10013315444
While it has become clear that communication is a monetary policy tool for central banks, and extensive research has … been conducted on central bank communication with financial markets, little is known so far on central bank communication … European Central Bank (ECB) and on understanding of its communication about the Pandemic Emergency Purchase Programme, which …
Persistent link: https://www.econbiz.de/10014354162
This paper examines the impact of rising interest rates on central bank profitability. Using a stylized income model, we demonstrate that changes in interest rates in combination with expansive balance sheet policies introduce a cyclical component into the central bank's profit and loss...
Persistent link: https://www.econbiz.de/10015199514