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Transparency, Disclosure, and the Federal Reserve Author info | Abstract | Publisher info | Download info | Related research | Statistics Michael Ehrmann
Marcel Fratzscher (European Central Bank)
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This paper provides an assessment of central bank transparency for the efficiency of monetary policy implementation, using the introduction of balance-of-risks assessments by the Federal Reserve as a testing device. We find that markets anticipated monetary policy decisions equally well under this new disclosure regime as before, but arrived at their expectations differently. Now, markets extract information from the statements, whereas before, they reverted to other types of Federal Reserve communication in the intermeeting periods. These findings suggest that the Federal Reserve’s new disclosure practice may have improved transparency, as information is now released at an earlier time and with clearer signals.
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Article provided by International Journal of Central Banking in its journal International Journal of Central Banking .
Volume (Year): 3 (2007)
Issue (Month): 1 (March)
Pages: 179-225
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Handle: RePEc:ijc:ijcjou:y:2007:q:1:a:6Contact details of provider: Postal: Centralbahnplatz 2, CH - 4002 Basel Phone: (41) 61 - 280 80 80 Fax: (41) 61 - 280 91 00 Email: Web page: http://www.ijcb.org/ More information through EDIRC
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Find related papers by JEL classification: E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Determination of Interest Rates; Term Structure of Interest Rates E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies G12 - Financial Economics - - General Financial Markets - - - Asset Pricing
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Alan S. Blinder & Michael Ehrmann & Marcel Fratzscher & Jakob De Haan & David-Jan Jansen, 2008.
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Helge Berger & Michael Ehrmann & Marcel Fratzscher, 2006.
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Michael Ehrmann & Marcel Fratzscher, 2005.
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Michael Ehrmann & Marcel Fratzscher, 2005.
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