Quotation Schmeling, Maik, Wagner, Christian. 2019. Central bank tone moves asset prices. VoxEU, 22.02.19




According to Ben Bernanke, “monetary policy is 98% talk and 2% action”.Using data on policy rate announcements and press conferences by the ECB between 1999 and 2017, this column shows that central bank tone affects asset prices, even after controlling for policy actions and economic fundamentals. The results are consistent with the idea that communication tone is a monetary policy tool that allows central banks to affect the risk appetite of market participants and the risk premia they require.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Magazine/newspaper article
Language English
Title Central bank tone moves asset prices
Title of journal VoxEU
Year 2019
Date Feb. 22, 2019
URL https://voxeu.org/article/central-bank-tone-moves-asset-prices


Wagner, Christian (Details)
Schmeling, Maik (Goethe University Frankfurt, Germany)
Institute for Finance, Banking and Insurance IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5361 Financial management (Details)
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