Do Financial Markets Learn from ECB Monetary Policy?

Posted: 2 Nov 2011 Last revised: 30 May 2013

See all articles by Jean-Yves Filbien

Jean-Yves Filbien

University of Lille I

Labondance Fabien

Louvain School of Management (UCL); University of Grenoble

Date Written: October 31, 2011

Abstract

This article examines the magnitude of stock market reactions around European Central Bank (ECB) monetary policy announcements. Since the introduction of ECB, the declining absolute abnormal returns have been compatible with stock market learning from ECB monetary policy making. The Eurozone financial markets extract information from the ECB announcements and consider the information before making investing decisions. Furthermore, the credibility of ECB has been increasing over time.

Keywords: Monetary Policy, CAR, Learning

JEL Classification: E52, E58, G14

Suggested Citation

Filbien, Jean-Yves and Fabien, Labondance, Do Financial Markets Learn from ECB Monetary Policy? (October 31, 2011). Economics Letters, Vol. 120, 2013, Available at SSRN: https://ssrn.com/abstract=1952101 or http://dx.doi.org/10.2139/ssrn.1952101

Jean-Yves Filbien (Contact Author)

University of Lille I ( email )

104, avenue du peuple Belge
Villeneuve d'Ascq Cedex, 59655
France

Labondance Fabien

Louvain School of Management (UCL) ( email )

Belgium

University of Grenoble ( email )

Grenoble
France

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
574
PlumX Metrics