Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/209854 
Year of Publication: 
2005
Series/Report no.: 
Working Paper No. 2005/7
Publisher: 
Norges Bank, Oslo
Abstract: 
The paper evaluates the ability of market participants to anticipate monetary policy decisions in the euro area and in 13 other countries. First, by looking at the magnitude and the volatility of the changes in the money market rates we show that the days of policy meetings are special days for financial markets. Second, we find that the predictability of the ECB's monetary policy is fully comparable (and sometimes slightly better) to that of the FED and the Bank of England. Finally, an econometric analysis of the ability of market participants to incorporate in the current money rates the expected changes in the key policy rate shows that in the euro area policy decisions are anticipated well in advance.
Subjects: 
monetary policy
predictability
money market rates
JEL: 
E4
E5
G1
Persistent Identifier of the first edition: 
ISBN: 
82-7553-313-9
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper
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