Fed’s communications may outweigh rate changes – Bundesbank paper
Researchers look at impact of Fed announcements and policy changes from 1994 to 2008
The Federal Reserve’s communications on monetary policy may have a bigger impact on markets than its actual rate changes, a working paper published by the Deutsche Bundesbank says.
In Monetary policy communication shocks and the macroeconomy, Robert Goodhead and Benedikt Kolb look at data from the US from 1994–2018.
The authors investigate the effect that the Federal Reserve’s communications and actual changes in its monetary policy had on Federal funds contracts from 1994–2008, and then on
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