Central bank communication key to herding behaviour, BoJ paper finds

Study reveals the effects of anxiety over interest rates among investors


Central bank communications have a powerful effect on herding behaviour by nervous investors, a working paper published today by the Bank of Japan (BoJ) has shown.

In Confidence erosion and herding behavior in bond markets, authors Koichiro Kamada and Ko Miura develop an existing model of private information in markets into a ‘two layer' model that includes public information as published by the central bank. Their approach seeks to explain the leap in interest rate volatility caused by the BoJ

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account