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

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
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (26 p.)
Specific Material Designation
Form Of Item

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