Cookies?
Library Header Image
LSE Research Online LSE Library Services

The importance of the wording of the ECB

Rosa, Carlo and Verga, Giovanni (2005) The importance of the wording of the ECB. CEPDP, 694. Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 0753018756

[img]
Preview
PDF
Download (441Kb) | Preview

Abstract

This paper analyses the ECB communication, focusing in particular on its transparency dimension. We posit that if the ECB is transparent about its future policy decisions, then we should be able to forecast fairly well its future interest rate setting behaviour. We find that the predicting ability of the European monetary authority’s words, is similar to the one implied by market-based measures of monetary policy expectations. Moreover, the ECB’s wording provides complementary, rather than substitute, information with respect to economic and monetary variables.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk
Additional Information: © 2005 the authors
Library of Congress subject classification: H Social Sciences > HG Finance
Journal of Economic Literature Classification System: E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E43 - Determination of Interest Rates; Term Structure of Interest Rates
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies
G - Financial Economics > G1 - General Financial Markets > G14 - Information and Market Efficiency; Event Studies
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy (Targets, Instruments, and Effects)
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: 694
Date Deposited: 23 Jul 2008 15:47
URL: http://eprints.lse.ac.uk/19888/

Actions (login required)

Record administration - authorised staff only Record administration - authorised staff only