To investigate the extent to which the transparency of the Bank of Canada’s monetary policy has improved, the authors examine empirically – over the period 30 October 2000 to 31 May 2007 – the reaction of Canadian financial markets to official Bank communications, and in particular their...

We assess the perception of professional forecasters regarding the effectiveness of unconventional monetary policy measures announced by the U.S. Federal Reserve after the collapse of Lehman Brothers. Using survey data collected at the individual level, we analyze the change in forecasts of...

I document that the high market returns and good performance of the CAPM associated with FOMC meetings are concentrated on meetings with unanticipated cuts to the Fed funds target rate. Moreover, stocks that perform poorly around meetings with surprise cuts subsequently outperform the market....