Article ID Journal Published Year Pages File Type
972711 The North American Journal of Economics and Finance 2008 16 Pages PDF
Abstract

The communication policy of the European Central Bank (ECB) attracts a lot of attention from financial markets. This paper analyses the informational content of the monthly introductory statements of the ECB president explaining interest rate decisions with regard to inflation expectations of financial market experts for the euro area from February 1999 to July 2006. Tests were conducted for the influence of ECB communication on expectations formation besides other macroeconomic variables. As the results indicate, the indicator measuring the informational content of ECB rhetoric contributes to the explanation of inflation expectations formation.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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