European Parliament Library

Where Have the Monetary Surprises Gone? The Effects of FOMC Statements, Andrew Swiston

Abstract
This paper examines the impact of central bank communication on market expectations of monetary policy and long-term interest rates by comparing Federal Open Market Committee (FOMC) action dates when a policy statement was made to dates before statements were issued. Increased communication has been associated with a reduction in the magnitude of short-term monetary surprises; a greater flow of information about the long-term path of policy that is distinct from the short-term surprise; and a larger role for these long-term surprises in the determination of long-term interest rates
Table Of Contents
Contents; I. Introduction; II. Literature Review; Tables; 1. Changes in the Federal Funds Rate and Treasury Yields; 2. Monetary Policy Actions; III. Information About Monetary Policy and Empirical Implications of Statements; IV. Have Statements Made Short-Term Policy More Predictable?; Figures; 1. Current-Month Monetary Policy Surprises, July 1989-March 2007; 3. The Distribution of Daily Changes in Federal Funds Futures for the Current FOMC Meeting; 4. The Distribution of Daily Changes in the Expected Federal Funds Rate After the Next FOMC Meeting
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (26 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781283515290

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