Investment in Capital Markets creates a strategic vision on the financial capital investment in the capital markets with the aim to get an increased return premium in the short and long time periods. The book is written with a main goal to explain the pros and cons of the financial capital...

A large literature documents a heterogeneous asset price response to macroeconomic news announcements. In order to explain these differences, we define the intrinsic value of a macroeconomic announcement as its ability to nowcast GDP growth, inflation and the federal funds target rate. We then...

The authors derive an estimate of the Federal Reserve's assessment of the natural rate of unemployment in real time from the Greenbook forecast of inflation. The estimated natural rate starts to rise noticeably in the second half of the mid-1970s. It stays relatively high in the 1980s, and then...

We study the impact that macroeconomic news has on equity prices. While the literature has already widely documented the effects of macroeconomic announcements on asset prices, as well as their asymmetric impact during good and bad times, we focus on the reaction to news when the description of...

We estimate monetary policy surprises (sentiment) from the perspective of three different textual sources: direct central bank communication (FOMC statements and press conferences), news articles, and Twitter posts during FOMC announcement days. Textual sentiment across sources is highly...

We study the impact of different central bank communication practices on the trading behavior and profitability of fast and slow traders in the foreign exchange market. We focus, in particular, on how the Bank of Japan's practice of introducing some randomness to the time at which it releases...

The authors derive an estimate of the Federal Reserve's assessment of the natural rate of unemployment in real time from the Greenbook forecast of inflation. The estimated natural rate starts to rise noticeably in the second half of the mid-1970s. It stays relatively high in the 1980s, and then...

When a policymaker is better informed than the public, public beliefs about the hidden informationemerge as additional state variables, managed by the policymaker. General methodsare presented to compute optimal commitment and discretion policies.Under commitment, policy is additive in two...

Monetary policy is most effective when public beliefs about future policies are activelymanaged. This is the appeal of policy rules and commitment strategies, typically absent underdiscretion. But when a policymaker has some private information — as is the case in reality— belief management...

I develop a methodology for Bayesian estimation of globally solved, non-linear macroeconomic models. A novel feature of my method is the use of a mixture density network to approximate the distribution of initial states. I use the methodology to estimate a medium-scale, two-agent New Keynesian...