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Monetary policy surprises, central bank information shocks, and economic activity in a small open economy

Laséen, Stefan - 2020

In this paper I study the effects of monetary policy on economic activity and asset prices in Sweden, separately identifying the effects of a conventional policy change from effects of new information about economic fundamentals. Recent research has shown that high-frequency changes in policy...

Persistent link: https://www.econbiz.de/10012497748

Purdah: on the rationale for central bank silence around policy meetings

Ehrmann, Michael; Fratzscher, Marcel - 2008

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

The Effects of Learning in Interactive Monetary Policy Committees

Berk, Jan Marc; Bierut, Beata K. - 2004

We develop a theoretical framework for studying the effects of interaction on the quaJity of decision-making by monetary policy committees. We show that interaction, i.e. increasing one's expertise through an exchange of views, is most likely not to result in interdependent voting...

Persistent link: https://www.econbiz.de/10010325323

Fed transparency and policy expectation errors: A text analysis approach

Fischer, Eric; McCaughrin, Rebecca; Prazad, Saketh; … - 2023

This paper seeks to estimate the extent to which market-implied policy expectations could be improved with further information disclosure from the FOMC. Using text analysis methods based on large language models, we show that if FOMC meeting materials with five-year lagged release dates-like...

Persistent link: https://www.econbiz.de/10014480439

Applying Complexity Theory to Interest Rates: Evidence of Critical Transitions in The Euro Area

van den End, Jan Willem - In: Credit and Capital Markets – Kredit und Kapital 52 (2019) 1, pp. 1-33

We apply complexity theory to financial markets to show that excess liquidity created by the Eurosystem has led to critical transitions in the configuration of interest rates. Complexity indicators turn out to be useful signals of tipping points and subsequent regime shifts in interest rates. We...

Persistent link: https://www.econbiz.de/10014523281

The Canadian neutral rate of interest through the lens of an overlapping-generations model

Kuncl, Martin; Matveev, Dmitry - 2023

The neutral rate of interest is an important concept and communication tool for central banks. We develop a small open …

Persistent link: https://www.econbiz.de/10014541752

Gazing at r-star: A hysteresis perspective

Beaudry, Paul; Kartashova, Katya; Meh, Césaire Assah - 2023

Many explanations for the decline in real interest rates over the last 30 years point to the role that population aging or rising income inequality plays in increasing the long-run aggregate demand for assets. Notwithstanding the importance of such factors, the starting point of this paper is to...

Persistent link: https://www.econbiz.de/10014544603

Forward guidance and "lower for longer": The case of the ECB

Bletzinger, Tilman; Wieland, Volker - 2016

A number of contributions to research on monetary policy have suggested that policy should be asymmetric near the lower bound on nominal interest rates. As inflation and economic activity decline, policy should ease more aggressively than it would in the absence of the lower bound. As activity...

Persistent link: https://www.econbiz.de/10011436668

Changes in monetary regimes and the identification of monetary policy shocks: Narrative evidence from Canada

Champagne, Julien; Sekkel, Rodrigo - 2017

We use narrative evidence along with a novel database of real-time data and forecasts from the Bank of Canada's staff economic projections from 1974 to 2015 to construct a new measure of monetary policy shocks and estimate the effects of monetary policy in Canada. We show that it is crucial to...

Persistent link: https://www.econbiz.de/10012014447

Quantitative easing and long-term yields in small open economies

Díez de los Ríos, Antonio; Shamloo, Maral - 2017

We compare the Federal Reserve's asset purchase programs with those implemented by the Bank of England and the Swedish Riksbank, and the Swiss National Bank's reserve expansion program. We decompose government bond yields into (i) an expectations component, (ii) a global term premium and (iii) a...

Persistent link: https://www.econbiz.de/10012014553