Article ID Journal Published Year Pages File Type
5059824 Economics Letters 2013 5 Pages PDF
Abstract
This article examines the magnitude of stock market reactions to European Central Bank (ECB) monetary policy announcements. Since the introduction of the ECB, declining absolute abnormal returns have been compatible with the theory that stock markets learn from ECB monetary policy. In particular, Eurozone financial markets extract information from the ECB announcements and consider this information before making investment decisions. Furthermore, the predictability of ECB monetary policy has been increasing over time.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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