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Comments on “Monetary policy announcements and expectations: Evidence from German firms”

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  • Bachmann, Rüdiger

Abstract

Enders et al. (2019b) find that small expansionary monetary policy surprises lead to increases in firms’ price and production expectations; vice versa for small contractionary monetary surprises. For larger monetary surprises of either direction, the reaction of price and production expectations tends to be dampened back to zero. This finding is explained with a differential, size-dependent mix in monetary policy surprises as regards their actual monetary policy content and their Delphic information content about how the monetary authority views the state of the economy. Policy conclusions from this result for the conduct of monetary policy and its communication are discussed.

Suggested Citation

  • Bachmann, Rüdiger, 2019. "Comments on “Monetary policy announcements and expectations: Evidence from German firms”," Journal of Monetary Economics, Elsevier, vol. 108(C), pages 64-68.
    • Handle: RePEc:eee:moneco:v:108:y:2019:i:c:p:64-68
    DOI: 10.1016/j.jmoneco.2019.09.003
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    References listed on IDEAS

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    1. Julien Pinter & Evzen Kocenda, 2021. "Media Treatment of Monetary Policy Surprises and Their Impact on Firms' and Consumers' Expectations," Working Papers IES 2021/30, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Sep 2021.

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    More about this item

    Keywords

    Central bank communication; Delphic effect; Firm expectations; Monetary policy; Survey data;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • 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

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