Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Enders et al. (2019b) find that small expansionary monetary policy surprises lead to increases in firms’ price and production expectations; vice versa for small contractionary monetary surprises. For larger monetary surprises of either direction, the reaction of price and production expectations tends to be dampened back to zero. This finding is explained with a differential, size-dependent mix in monetary policy surprises as regards their actual monetary policy content and their Delphic information content about how the monetary authority views the state of the economy. Policy conclusions from this result for the conduct of monetary policy and its communication are discussed.