In a new and changing environment for monetary policy, an interesting issue to examine is the use of financial market indicators by monetary policy authorities. With this in mind, the OECD canvassed a number of major central banks to get their views. This paper presents a synthesis of the responses and respects the confidentiality of individual central banks. Its main conclusions are as follows. In principle, financial market variables can provide additional information regarding the shocks that strike the economy, such as their perceived size and source as well as the process of feeding through the economy. A complementary function is to gauge market anticipations and reactions to policy changes, including the credibility of policy objectives. Regarding policy setting, monetary authorities are clearly aware of the dangers of mechanically targeting this information, which could lead to circularities. However, in some cases, they seem to find financial market indicators useful in ...

Dans un environnement de politique monétaire nouveau et en pleine évolution, il nous a semblé intéressant d’examiner l’usage que les autorités de la politique monétaire font des indicateurs du marché financier. C’est dans cette optique que l’OCDE a sollicité l’avis d’un certain nombre de grandes banques centrales. Ce document présente une synthèse de l’ensemble de leurs opinions, tout en respectant la confidentialité de chacune d’entre elles, dont les principales conclusions sont les suivantes. En principe, les variables concernant le marché financier peuvent fournir des informations supplémentaires en ce qui concerne les secousses qui frappent l’économie, en ce sens qu’elles en perçoivent l’ampleur, la source aussi bien que les répercussions sur le système économique. Une de leurs fonctions complémentaires est d’évaluer les anticipations du marché et les réactions aux changements de politique, ainsi que la crédibilité des objectifs politiques. Bien que les autorités monétaires ...

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Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 223.

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Keywords: monetary policy indicators central bank policies financial market indicators indicateurs de la politique monétaire politiques des banques centrales indicateurs du marché financier

Find related papers by JEL classification:
E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies

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