Is ECB Communication Effective?

Centre for Economic Performance Discussion Paper No. 0682

22 Pages Posted: 17 Nov 2004

See all articles by Carlo Rosa

Carlo Rosa

Federal Reserve Banks - Federal Reserve Bank of New York

Giovanni Verga

Università degli Studi di Parma

Date Written: April 2005

Abstract

In its Monthly Bulletin of November 2002, the European Central Bank (ECB) stated that the monthly press conference held by its President represents one of its most important communication channels and that it provides a comprehensive summary of the policy-relevant assessment of economic developments. After providing a glossary to translate the qualitative information of the press conferences into an ordered scale, we verify empirically whether and to what extent market expectations react to the information released by the ECB. We found that the public not only understand but also believe the signals sent by the European monetary authority.

Keywords: communication, credibility, ECB, glossary, Repo, Euribor, news approach.

JEL Classification: E50, E52, E58

Suggested Citation

Rosa, Carlo and Verga, Giovanni, Is ECB Communication Effective? (April 2005). Centre for Economic Performance Discussion Paper No. 0682. Available at SSRN: https://ssrn.com/abstract=621641 or http://dx.doi.org/10.2139/ssrn.621641

Carlo Rosa

Federal Reserve Banks - Federal Reserve Bank of New York ( email )

Giovanni Verga (Contact Author)

Università degli Studi di Parma ( email )

Via Amendola 10
Parma, 43100
Italy

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