The Timing of Central Bank Communication

By Michael Ehrmann, Marcel Fratzscher. Social Science Research Network, 2007

134 citations recorded by the source corpus.

This paper explores whether there are systematic patterns as to when members of the decision-making committees of the Federal Reserve, the Bank of England and the European Central Bank communicate with the public, and under what circumstances such communication has the ability to move financial markets. The findings suggest that communication is generally seen as a tool to prepare markets for upcoming decisions, as it becomes more intense before committee meetings, and particularly so prior to interest rate changes. At the same time, markets react more strongly to communication prior to policy changes. Other instances where communication becomes more intense, or where financial markets become more responsive are also identified; even though these are more specific to the individual central banks, they are consistent with differences in the central banks’ monetary policy strategies and communication policies. JEL Classification: E43, E52, E58, G12

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/6fc44ece9f3e50decee6efffaa193880a2f42df6

Citations in the corpus

• Effects of Central Bank Intervention on the Interbank Market During the Subprime Crisis (2011, unknown): “Following Ehrmann and Fratzscher (2005a), we compile expected rates from Reuters surveys of 40 European commercial bank treasurers.”