Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/152999
Authors: 
Ehrmann, Michael
Fratzscher, Marcel
Year of Publication: 
2005
Series/Report no.: 
ECB Working Paper 565
Abstract: 
This paper explores whether there are systematic patterns as to when members of the decision-making committees of the Federal Reserve, the Bank of England and the European Central Bank communicate with the public, and under what circumstances such communication has the ability to move financial markets. The findings suggest that communication is generally seen as a tool to prepare markets for upcoming decisions, as it becomes more intense before committee meetings, and particularly 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 identified; even though these are more specific to the individual central banks, they are consistent with differences in the central banks’ monetary policy strategies and communication policies.
Subjects: 
Central Bank
communication
monetary policy
timing
JEL: 
E43
E52
E58
G12
Document Type: 
Working Paper

Files in This Item:
File
Size
499.58 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.