Download or read book European Stock Markets and the ECB s Monetary Policy Surprises written by Martin T. Bohl and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper contributes to the literature measuring the response of stock markets to monetary policy actions. We analyze the reaction of European stock market returns to unexpected interest rate decisions by the ECB. Endogeneity between interest rate changes and stock returns is taken into account using the identification through heteroskedasticity approach. Relying on different methods to extract monetary policy shocks, we find a negative and significant relation between unexpected ECB decisions and European stock markets performance. Moreover, monetary policy decisions of the ECB are well anticipated by the market implying that the central bank successfully communicates its monetary policy.
Download or read book The Impact of the ECB s Conventional and Unconventional Monetary Policies on Stock Markets written by Deren Unalmis and published by . This book was released on 2015 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A New Wave of ECB s Unconventional Monetary Policies Domestic Impact and Spillovers written by Richard Varghese and published by International Monetary Fund. This book was released on 2018-01-24 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: ECB President Draghi’s Jackson Hole speech in August 2014 arguably marked a new phase of unconventional monetary policies (UMPs) in the euro area. This paper examines the market impact and tranmission channels of this new wave of UMPs using a modified event study framework. They are found to have a more prominent impact on inflation expectations and exchange rates compared to the earlier UMP announcements. The impact on bank equity, however, is less significant in part due to narrowing profit margin in a low interest rate environment; and the marginal effect on sovereign spread compression has diminished. By extracting components of monetary policy shocks from the yield curve, we find that the traditional signaling channel of the monetary policy transmission continued to play an important role, but the portfolio rebalancing channel became more important in the new phase. Spillovers to non-euro area EU countries (the Czech Republic, Denmark, Poland, and Sweden) are transmitted mainly through the portfolio rebalancing channel, largely affecting sovereign yields and exchange rates.
Download or read book Measuring Euro Area Monetary Policy written by Carlo Altavilla and published by . This book was released on 2019 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the information flow from the ECB on policy dates since its inception, using tick data. We show that three factors capture about all of the variation in the yield curve but that these are different factors with different variance shares in the window that contains the policy decision announcement and the window that contains the press conference. We also show that the QE-related policy factor has been dominant in the recent period and that Forward Guidance and QE effects have been very persistent on the longer-end of the yield curve. We further show that broad and banking stock indices' responses to monetary policy surprises depended on the perceived nature of the surprises. We find no evidence of asymmetric responses of financial markets to positive and negative surprises, in contrast to the literature on asymmetric real effects of monetary policy. Lastly, we show how to implement our methodology for any policy-related news release, such as policymaker speeches. To carry out the analysis, we construct the Euro Area Monetary Policy Event-Study Database (EA-MPD). This database, which contains intraday asset price changes around the policy decision announcement as well as around the press conference, is a contribution on its own right and we expect it to be the standard in monetary policy research for the euro area.
Download or read book European Monetary Policy Surprises written by Don Bredin and published by . This book was released on 2006 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Inflation Expectations written by Peter J. N. Sinclair and published by Routledge. This book was released on 2009-12-16 with total page 402 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inflation is regarded by the many as a menace that damages business and can only make life worse for households. Keeping it low depends critically on ensuring that firms and workers expect it to be low. So expectations of inflation are a key influence on national economic welfare. This collection pulls together a galaxy of world experts (including Roy Batchelor, Richard Curtin and Staffan Linden) on inflation expectations to debate different aspects of the issues involved. The main focus of the volume is on likely inflation developments. A number of factors have led practitioners and academic observers of monetary policy to place increasing emphasis recently on inflation expectations. One is the spread of inflation targeting, invented in New Zealand over 15 years ago, but now encompassing many important economies including Brazil, Canada, Israel and Great Britain. Even more significantly, the European Central Bank, the Bank of Japan and the United States Federal Bank are the leading members of another group of monetary institutions all considering or implementing moves in the same direction. A second is the large reduction in actual inflation that has been observed in most countries over the past decade or so. These considerations underscore the critical – and largely underrecognized - importance of inflation expectations. They emphasize the importance of the issues, and the great need for a volume that offers a clear, systematic treatment of them. This book, under the steely editorship of Peter Sinclair, should prove very important for policy makers and monetary economists alike.
Download or read book Regional Aspects of Monetary Policy in Europe written by Jürgen von Hagen and published by Springer Science & Business Media. This book was released on 2013-04-17 with total page 331 pages. Available in PDF, EPUB and Kindle. Book excerpt: Monetary union has dawned in Europe. Now that the common currency is a reality, questions concerning the practical conduct of monetary policy in the European Monetary Union (EMU) are moving to the forefront of the policy debate. Among these, one of the most critical is how the new monetary union will cope with the large heterogeneity of its member economies. Given the large differences in economic and financial structures among the EMU member states, monetary policy is likely to affect different member economies in different ways. Regional Aspects of Monetary Policy in Europe collects the proceedings of an international conference held at the Center for European Integration Studies of the University of Bonn, dedicated to this issue. The contributions to this conference fall into two parts. The first part consists of empirical and theoretical studies of the regional effects of monetary policy in heterogeneous monetary unions. The second part consists of papers analyzing the political economy of monetary policy in a monetary union of heterogeneous regions or member states. The papers all support the conclusion that regional differences in the responses to a common monetary policy will make European monetary policy especially difficult in the years to come. Such differences arise from a variety of sources, and they cannot be expected to be mere teething troubles that will disappear after a while. Even if they were ignored in the run-up to the EMU, Europe's central bankers and economic policy makers will have to learn how to cope with such differences in the future.
Download or read book European Monetary Policy Surprises written by Don Bredin and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Writing Clearly written by Mr. Martin Cihák and published by International Monetary Fund. This book was released on 2008-10-01 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper presents a methodology for measuring the clarity of central bank communication, illustrating it with the case of the European Central Bank (ECB) in 1999-2007. The analysis identifies the ECB''s written communication as clear about 95 percent of instances, which is comparable to, or even better than, other central banks for which a similar analysis is available. We also find that the additional information contained in the ECB''s Monthly Bulletins helps to improve communication clarity compared to ECB''s press releases. In particular, the Bulletins contain useful clarifying information on individual inflation factors and the overall forecast risk; in contrast, the bulletin''s communication on monetary shocks has a negative, albeit small, impact on clarity.
Download or read book ECB Monetary Policy Surprises Identification Through Cojumps in Interest Rates written by Lars Winkelmann and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Transmission of the European Central Bank Monetary Policy Across Regional Stocks Markets written by Juan M. Nave and published by . This book was released on 2020 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we estimate the transmission of common euro area monetary policy shocks across the euro area main stock markets. To do so, we develop global SVAR models in which the ECB monetary policy is modeled as a function of euro area aggregate variables and the US variables that define the FED monetary policy shocks. Our results suggest, in line with economic theory, that the transmission of monetary policy across Eurozone stocks markets displays heterogeneity driven by differences in the listed firms' characteristics but also by the distance between the actual ECB stance and the obtained by applying a Taylor rule implied in the ECB policy to country-specific macroeconomic data. These results highlight the need for a corrective fiscal policy on the undesirable effects of the common monetary policy and may allow policymakers to check the effects of their fiscal policies when any.
Download or read book European Monetary Policy and Stock Markets written by Katarína Kojdová and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The financial crisis of 2008 had a severe impact on European financial markets. To restore the functioning of its transmission mechanism, boost financial markets and achieve price stability the European Central Bank started to implement alternative monetary policy measures, asset purchase programs, as of July 2009. Since the outbreak of the financial crisis in 2008 there has been a noticeable improvement in the performance of the Euro Stoxx index, especially in 2009, 2014 and 2015. Conceptual reasons of this master thesis show that the asset purchase programs of the ECB result in price increases of European stocks and increase the risk of stock price bubbles. This master thesis shows the connection between stock evaluation models and the economic impact of the European monetary policy decisions. *****Die Finanzkrise von 2008 wirkte sich stark auf die europäischen Finanzmärkte aus. Ab Juli 2009 hat die Europäische Zentralbank begonnen alternative geldpolitische Maßnahmen - Programme zum Ankauf von Vermögenswerten umzusetzen, um die Funktionsweise ihres Transmissionsmechanismus wiederherzustellen, die Finanzmärkte zu stärken und die Preisstabilität zu erreichen. Seit dem Ausbruch der Finanzkrise im Jahr 2008 gab es eine spürbare Verbesserung der Performance des Euro Stoxx Indexes, insbesondere in den Jahren 2009, 2014 und 2015. Konzeptionelle Gründe dieser Masterarbeit zeigen, dass die Programme zum Ankauf von Vermögenswerten der EZB zu Preiserhöhungen der europäischen Aktien führen und das Risiko von Aktienkursblasen erhöhen. Diese Masterarbeit macht den Zusammenhang zwischen Aktienbewertungsmodele und wirtschaftlichen Auswirkungen von geldpolitischen Entscheidungen der Europäischen Zentralbank deutlich.
Download or read book Inflation News and Euro Area Inflation Expectations written by Juan Angel Garcia and published by International Monetary Fund. This book was released on 2018-07-19 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: Do euro area inflation expectations remain well-anchored? This paper finds that the protracted period of low (and below-target) inflation in the euro area since 2013 has weakened their anchoring. Testing their sensitivity to inflation and macroeconomic news, this paper expands existing results in two key dimensions. First, by analyzing all available (advanced) inflation releases. Second, the reactions of expectations are investigated at daily, time-varying and intraday frequency regressions to add robustness to our conclusions. Results point to a significant impact of inflation news over recent years that had not been observed before in the euro area.
Download or read book Monetary Policy Transmission in the Euro Area written by Ignazio Angeloni and published by Cambridge University Press. This book was released on 2003-12-04 with total page 515 pages. Available in PDF, EPUB and Kindle. Book excerpt: This 2003 book offers the most systematic analysis available of the impact of European Central Bank monetary policy on the national economies of the Eurozone. Analysing macro and micro-economic evidence, with chapters by central bank economists, including a discussion chapter by eminent macroeconomists, it is an essential contribution to research on the subject.
Download or read book Assessing the Impact of the ECB s Monetary Policy on the Stock Markets a Sectoral View written by Konstantin A. Kholodilin (Economiste.) and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Information Acquisition Ahead of Monetary Policy Announcements written by Michael Ehrmann and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: How do financial markets acquire information about upcoming monetary policy decisions, beyond their reaction to central bank signals? This paper hypothesises that sharing information among investors can improve expectations, especially in the presence of disagreement or uncertainty about the economy. To test this hypothesis, the paper studies monetary policy-related content on Twitter during the "quiet period" before European Central Bank announcements, when policymakers refrain from public statements related to monetary policy. Conditional on large disagreement about the economic outlook, higher Twitter traffic is associated with smaller monetary policy surprises, suggesting that exchanging private signals among investors can help improve expectations.
Download or read book Effects of ECB and Fed Monetary Policy Shocks on EU Stock Market Returns written by Hallgrimur Björnsson and published by . This book was released on 2007 with total page 145 pages. Available in PDF, EPUB and Kindle. Book excerpt:
