What matters when? The impact of ECB communication on financial market expectations

C-Tier
Journal: Applied Economics
Year: 2011
Volume: 43
Issue: 28
Pages: 4289-4309

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This article analyses financial markets' reaction to European Central Bank's (ECB) communication. We apply a novel indicator that quantifies the contents of the ECB's introductory statements and allows disentangling ECB statements on prices, the real and the monetary sector. We provide evidence that it matters what issue the ECB is speaking about: especially, the ECB's statements on price developments represent important news to financial markets. It also matters when the ECB affects markets: communication drives maturities above 4 months.

Technical Details

RePEc Handle
repec:taf:applec:v:43:y:2011:i:28:p:4289-4309
Journal Field
General
Author Count
2
Added to Database
2026-01-25