Does the Beige Book Move Financial Markets?

FRB of Atlanta Working Paper No. 2003-3

32 Pages Posted: 11 Jun 2003

See all articles by Madeline Zavodny

Madeline Zavodny

University of North Florida; IZA Institute of Labor Economics; Agnes Scott College

Donna K. Ginther

University of Kansas - Department of Economics

Date Written: January 2003

Abstract

About two weeks prior to each FOMC meeting, the Federal Reserve releases a description of economic activity in a document called the Beige Book. The authors examine whether the descriptive content of the Beige Book affects asset prices. The results indicate that more positive Beige Book reports on economic growth are associated with increases in interest rates, particularly long-term rates, even after controlling for other macroeconomic data releases. Stronger Beige Book reports are positively associated with changes in equity prices during expansions but negatively during recessions.

Keywords: Federal Reserve, Beige Book, stock market, interest rates

JEL Classification: E5, E44

Suggested Citation

Zavodny, Madeline and Ginther, Donna K., Does the Beige Book Move Financial Markets? (January 2003). FRB of Atlanta Working Paper No. 2003-3, Available at SSRN: https://ssrn.com/abstract=386160 or http://dx.doi.org/10.2139/ssrn.386160

Madeline Zavodny (Contact Author)

University of North Florida ( email )

4567 St. Johns Bluff Road, South
Jacksonville, FL 32224-2645
United States

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Agnes Scott College ( email )

United States

Donna K. Ginther

University of Kansas - Department of Economics ( email )

1300 Sunnyside Drive
Lawrence, KS 66045-7585
United States

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