Abstract

http://ssrn.com/abstract=1167288
 
 

References (56)



 


 



It's Not Only What is Said, it's Also Who the Speaker is - Evaluating the Effectiveness of Central Bank Communication


Marek Rozkrut


National Bank of Poland

April 2008

National Bank of Poland Working Paper No. 47

Abstract:     
On the basis of a unique database of policy makers' comments, we find that central bank communication does influence behavior of financial markets. This effect is asymmetric and depends on the contents and direction of the statements. Moreover, we investigate whether individual characteristics of MPC members may influence their ability to affect the asset prices. We find that market participants are most vigilant to the comments made by policy makers who are relatively reticent, usually win voting and match their words with deeds. Moreover, the impact of statements on financial market behavior depends on whether a speaker represents a hawkish, dovish or neutral faction within the committee. Finally, we provide evidence that central bank communication affects the predictability of monetary policy decisions.

Number of Pages in PDF File: 40

Keywords: Monetary policy, Central bank, Transparency, Communication

JEL Classification: C32, E43, E52, E58, G12

working papers series





Download This Paper

Date posted: July 25, 2008  

Suggested Citation

Rozkrut, Marek, It's Not Only What is Said, it's Also Who the Speaker is - Evaluating the Effectiveness of Central Bank Communication (April 2008). National Bank of Poland Working Paper No. 47. Available at SSRN: http://ssrn.com/abstract=1167288 or http://dx.doi.org/10.2139/ssrn.1167288

Contact Information

Marek Rozkrut (Contact Author)
National Bank of Poland ( email )
00-919 Warsaw
Poland
Feedback to SSRN


Paper statistics
Abstract Views: 301
Downloads: 41
References:  56

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.281 seconds