There are numerous empirical and theoretical studies that show that stock returns are affected by implementations of monetary policy. But, as mentioned in Bernanke and Kuttner (2005), very few studies tackle the question of why the stock market reacts to monetary policy. Romer and Romer (2000)...

This article investigates whether the Federal Reserve's (Fed's) private Gross Domestic Product (GDP) growth forecasts, as reported in the Greenbook of the Fed, contain information about future real and excess stock returns. I implement long-horizon regressions to analyse the predictive power of...

Using theoretical and empirical analyses, this paper shows that the expectation dynamics induced by information asymmetry between the Central Bank (CB) and the public can cause the price puzzle. The signalling and learning dynamics between the CB and a representative private-sector agent under...

Abstract Public procurement data sets usually lack detailed data that are needed to implement existing methods of collusion detection. We design a method to identify and test for bid rigging in procurement auctions using limited information. The method can be applied to limited data sets using...

This paper contributes to the ongoing debate about the existence and the source of asymmetric information between the Federal Reserve and the public by examining the federal funds rate forecasts. It shows that the Federal Reserve has superior information about its own future policy actions, the...