Swiss paper dissects asset price responses to economic news
The impact of economic news on asset prices largely depends on the prevailing economic conditions of the time, according to a working paper published yesterday by the Swiss National Bank.
In Time variation in asset price responses to macro announcements, Linda Goldberg and Christian Grisse note that the relationship between economic news and asset prices is "unlikely to be stable".
They find "significant time variation" in the effect a news announcement will have on asset prices, which they
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