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Using novel data on speeches held by members of the European Central Bank's Executive Board, we investigate whether monetary policy transparency has increased over time. With respect to the general public as the target audience, our findings suggest that the European Central Bank successfully...
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We examine how the language used by central bank officials in public press conferences influences stock returns in the … euro area. In line with the concept of Odyssean Forward Guidance, we find that using constraining language to express … analysis, we provide strong evidence that market participants interpret higher levels of uncertain language in the economic …
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Bid-ask spreads using intraday data reveal significant sensitivity to European Central Bank (ECB) macro announcements. Effects are strongest for announcements that comprise unexpected information or a change in interest rates, and spreads rise sharply during the minutes surrounding interest rate...
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We argue that if currency union member states have different potential output per capita, output growth rates, or trade balances, the common monetary policy may not be optimal for all of them. Euro area imbalances for potential output and for trade balances are quite large, while output growth...
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