ECB announcements in QE era shifted inflation expectations, Austrian paper finds

ecb-frankfurt-tower
The European Central Bank

The monetary policy announcements of the European Central Bank have had a measurable effect on market expectations of inflation and government bond yields, a working paper published by the National Bank of Austria argues. In The Effectiveness of Unconventional Monetary Policy Announcements in the Euro Area: An Event and Econometric Study, Steve Ambler and Fabio Rumler use daily data on eurozone government bond yields and inflation-linked swaps. They look at the effect on these indicators of