This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Transparency, Disclosure, and the Federal Reserve Author info | Abstract | Publisher info | Download info | Related research | Statistics Michael Ehrmann
Marcel Fratzscher (European Central Bank)
Additional information is available for the following
registered author(s):
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.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
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
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
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
For technical questions regarding this item, or to correct its listing, contact: (Timo Laurmaa).
Keywords: Other versions of this item:
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
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
Refet Gurkaynak & Brian Sack & Eric Swanson, 2005.
"Do Actions Speak Louder than Words? The Response of Asset Prices to Monetary Policy Actions and Statements ,"
Macroeconomics
0504013, EconWPA.
[Downloadable!]
Other versions:
Gurkaynak, Refet S & Sack, Brian & Swanson, Eric T, 2005.
"Do Actions Speak Louder Than Words? The Response of Asset Prices to Monetary Policy Actions and Statements ,"
MPRA Paper
820, University Library of Munich, Germany.
[Downloadable!] Refet Gürkaynak & Brian Sack & Eric Swanson, 2004.
"Do actions speak louder than words? the response of asset prices to monetary policy actions and statements ,"
Finance and Economics Discussion Series
2004-66, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!] Refet S Gürkaynak & Brian Sack & Eric Swanson, 2005.
"Do Actions Speak Louder Than Words? The Response of Asset Prices to Monetary Policy Actions and Statements ,"
International Journal of Central Banking ,
International Journal of Central Banking, vol. 1(1), May.
[Downloadable!] Selva Demiralp, 2001.
"Monetary policy in a changing world: rising role of expectations and the anticipation effect ,"
Finance and Economics Discussion Series
2001-55, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
Lee, Jim, 2002.
"Federal funds rate target changes and interest rate volatility ,"
Journal of Economics and Business ,
Elsevier, vol. 54(2), pages 159-191.
[Downloadable!] (restricted)
Ben S. Bernanke & Vincent R. Reinhart & Brian P. Sack, 2004.
"Monetary Policy Alternatives at the Zero Bound: An Empirical Assessment ,"
Brookings Papers on Economic Activity ,
Economic Studies Program, The Brookings Institution, vol. 35(2004-2), pages 1-100.
[Downloadable!]
Other versions: Michael Woodford, 2005.
"Central-bank communication and policy effectiveness ,"
Discussion Papers
0506-07, Columbia University, Department of Economics.
[Downloadable!]
Other versions: Reifschneider, David & Willams, John C, 2000.
"Three Lessons for Monetary Policy in a Low-Inflation Era ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 32(4), pages 936-66, November.
Stein, Jeremy C, 1989.
"Cheap Talk and the Fed: A Theory of Imprecise Policy Announcements ,"
American Economic Review ,
American Economic Association, vol. 79(1), pages 32-42, March.
[Downloadable!] (restricted)
Christina D. Romer & David H. Romer, 2000.
"Federal Reserve Information and the Behavior of Interest Rates ,"
American Economic Review ,
American Economic Association, vol. 90(3), pages 429-457, June.
[Downloadable!] (restricted)
William Poole & Robert H. Rasche, 2003.
"The impact of changes in FOMC disclosure practices on the transparency of monetary policy: are markets and the FOMC better "synched"? ,"
Review ,
Federal Reserve Bank of St. Louis, issue Jan, pages 1-10.
[Downloadable!]
David Reifschneider & John C. Williams, 2000.
"Three lessons for monetary policy in a low-inflation era ,"
Conference Series ; [Proceedings] ,
Federal Reserve Bank of Boston, pages 936-978.
Other versions: Goodfriend, Marvin, 1986.
"Monetary mystique: Secrecy and central banking ,"
Journal of Monetary Economics ,
Elsevier, vol. 17(1), pages 63-92, January.
[Downloadable!] (restricted)
Other versions: Andersen, Torben G. & Bollerslev, Tim & Diebold, Francis X. & Vega, Clara, 2002.
"Micro Effects of Macro Announcements: Real-Time Price Discovery in Foreign Exchange ,"
Working Papers
02-16, Duke University, Department of Economics.
[Downloadable!]
Other versions:
Torben G. Andersen & Tim Bollerslev & Francis X. Diebold & Clara Vega, 2002.
"Micro Effects of Macro Announcements: Real-Time Price Discovery in Foreign Exchange? ,"
Center for Financial Institutions Working Papers
02-23, Wharton School Center for Financial Institutions, University of Pennsylvania.
[Downloadable!] Torben G. Andersen & Tim Bollerslev & Francis X. Diebold & Clara Vega, 2002.
"Micro Effects of Macro Announcements: Real-Time Price Discovery in Foreign Exchange ,"
NBER Working Papers
8959, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Anderson, Torben G. & Bollerslev, Tim & Diebold, Francis X. & Vega, Clara, 2002.
"Micro Effects of Macro Announcements: Real-Time Price Discovery in Foreign Exchange ,"
Working Papers
02-1, University of Pennsylvania, Wharton School, Weiss Center.
[Downloadable!] Torben G. Andersen & Tim Bollerslev & Francis X. Diebold & Clara Vega, 2003.
"Micro Effects of Macro Announcements: Real-Time Price Discovery in Foreign Exchange ,"
American Economic Review ,
American Economic Association, vol. 93(1), pages 38-62, March.
[Downloadable!] Frederic S. Mishkin, 2004.
"Can Central Bank Transparency Go Too Far? ,"
NBER Working Papers
10829, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Refet Gürkaynak & Brian Sack, 2005.
"Do Actions Speak Louder Than Words?The Response of Asset Prices to Monetary Policy Actions and Statements ,"
Computing in Economics and Finance 2005
323, Society for Computational Economics.
Cukierman, Alex & Meltzer, Allan H, 1986.
"A Theory of Ambiguity, Credibility, and Inflation under Discretion and Asymmetric Information ,"
Econometrica ,
Econometric Society, vol. 54(5), pages 1099-1128, September.
[Downloadable!] (restricted)
Daniel Thornton & David C. Wheelock, 2000.
"A history of the asymmetric policy directive ,"
Review ,
Federal Reserve Bank of St. Louis, issue Sep, pages 1-16.
[Downloadable!]
Alan S. Blinder, 1999.
"Central Banking in Theory and Practice ,"
MIT Press Books ,
The MIT Press,
edition 1, volume 1, number 0262522608.
Nelson, Daniel B, 1991.
"Conditional Heteroskedasticity in Asset Returns: A New Approach ,"
Econometrica ,
Econometric Society, vol. 59(2), pages 347-70, March.
[Downloadable!] (restricted)
Michael Ehrmann & Marcel Fratzscher, 2005.
"Equal Size, Equal Role? Interest Rate Interdependence Between the Euro Area and the United States ,"
Economic Journal ,
Royal Economic Society, vol. 115(506), pages 928-948, October.
[Downloadable!] (restricted)
Other versions: William Poole, 2003.
"Fed transparency: how, not whether ,"
Review ,
Federal Reserve Bank of St. Louis, issue Nov, pages 1-8.
[Downloadable!]
Other versions: Swanson, Eric T., 2006.
"Have Increases in Federal Reserve Transparency Improved Private Sector Interest Rate Forecasts? ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 38(3), pages 791-819, April.
[Downloadable!] (restricted)
Michael Ehrmann & Marcel Fratzscher, 2004.
"Taking stock: monetary policy transmission to equity markets ,"
Working Paper Series
354, European Central Bank.
[Downloadable!]
Selva Demiralp & Òscar Jordà, 2002.
"The announcement effect: evidence from open market desk data ,"
Economic Policy Review ,
Federal Reserve Bank of New York, issue May, pages 29-48.
[Downloadable!]
Other versions: Michael J. Fleming & Eli M. Remolona, 1999.
"The term structure of announcement effects ,"
Staff Reports
76, Federal Reserve Bank of New York.
[Downloadable!]
Other versions: Lange, Joe & Sack, Brian & Whitesell, William, 2003.
" Anticipations of Monetary Policy in Financial Markets ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 35(6), pages 889-909, December.
Kuttner, Kenneth N., 2001.
"Monetary policy surprises and interest rates: Evidence from the Fed funds futures market ,"
Journal of Monetary Economics ,
Elsevier, vol. 47(3), pages 523-544, June.
[Downloadable!] (restricted)
Other versions: Antulio N. Bomfim & Vincent R. Reinhart, 2000.
"Making news: financial market effects of Federal Reserve disclosure practices ,"
Finance and Economics Discussion Series
2000-14, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
Michael Ehrmann & Marcel Fratzscher, 2002.
"Interdependence between the euro area and the US: what role for EMU? ,"
Working Paper Series
200, European Central Bank.
[Downloadable!]
Other versions: Petra M. Geraats, 2002.
"Central Bank Transparency ,"
Economic Journal ,
Royal Economic Society, vol. 112(483), pages 532-565, November.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Alan S. Blinder & Michael Ehrmann & Marcel Fratzscher & Jakob De Haan & David-Jan Jansen, 2008.
"Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence ,"
NBER Working Papers
13932, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Alan S. Blinder & Michael Ehrmann & Marcel Fratzscher & Jakob De Haan & David-Jan Jansen, 2008.
"Central Bank communication and monetary policy - a survey of theory and evidence ,"
Working Paper Series
898, European Central Bank.
[Downloadable!] Alan S. Blinder & Michael Ehrmann & Marcel Fratzscher & Jakob De Haan & David-Jan Jansen, 2008.
"Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence ,"
Working Papers
1038, Princeton University, Department of Economics, Center for Economic Policy Studies..
[Downloadable!] Alan S. Blinder & Michael Ehrmann & Marcel Fratzscher & Jakob de Haan & David-Jan Jansen, 2008.
"Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence ,"
DNB Working Papers
170, Netherlands Central Bank, Research Department.
[Downloadable!] Alan S. Blinder & Michael Ehrmann & Marcel Fratzscher & Jakob De Haan & David-Jan Jansen, 2008.
"Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence ,"
Journal of Economic Literature ,
American Economic Association, vol. 46(4), pages 910-45, December.
Amihai Glazer, 2006.
"Predicting Committee Action ,"
Working Papers
050621, University of California-Irvine, Department of Economics.
[Downloadable!]
Michael Ehrmann & Marcel Fratzscher, 2008.
"Purdah - on the rationale for central bank silence around policy meetings ,"
Working Paper Series
868, European Central Bank.
[Downloadable!]
Other versions: Silvio Colarossi & Andrea Zaghini, 2009.
"Gradualism, transparency and the improved operational framework: a look at the overnight volatility transmission ,"
Temi di discussione (Economic working papers)
710, Bank of Italy, Economic Research Department.
[Downloadable!]
Michael Woodford, 2005.
"Central Bank Communication and Policy Effectiveness ,"
NBER Working Papers
11898, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Helge Berger & Michael Ehrmann & Marcel Fratzscher, 2006.
"Geography or skills - What explains Fed watchers’ forecast accuracy of US monetary policy? ,"
Working Paper Series
695, European Central Bank.
[Downloadable!]
Other versions: Nautz, Dieter & Schmidt, Sandra, 2008.
"Monetary Policy Implementation and the Federal Funds Rate ,"
ZEW Discussion Papers
08-025, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
[Downloadable!]
Katrin Tinn, 2005.
"Optimal research in financial markets with heterogeneous private information a rational expectations model ,"
Working Paper Series
493, European Central Bank.
[Downloadable!]
Other versions: Helge Berger & Michael Ehrmann & Marcel Fratzscher, 2006.
"Monetary policy in the media ,"
Working Paper Series
679, European Central Bank.
[Downloadable!]
Michael Ehrmann & Marcel Fratzscher, 2005.
"How should central banks communicate? ,"
Working Paper Series
557, European Central Bank.
[Downloadable!]
Michael Ehrmann & Marcel Fratzscher, 2005.
"The timing of central bank communication ,"
Working Paper Series
565, European Central Bank.
[Downloadable!]
Other versions:
Access and
download statistics Did you know? You may want to explore EconPapers , which displays the same data as IDEAS in a different way.
This page was last updated on 2009-11-17.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .