TY  - UNPD
A1  - Coenen, Günter
A1  - Ehrmann, Michael
A1  - Gaballo, Gaetano
A1  - Hoffmann, Peter
A1  - Nakov, Anton
A1  - Nardelli, Stefano
A1  - Persson, Eric
A1  - Strasser, Georg
T1  - Communication of monetary policy in unconventional times
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 578
N2  - Monetary policy communication is particularly important during unconventional times, because high uncertainty about the economy, the introduction of new policy tools and possible limits to the central bank’s toolkit could hamper the predictability of policy actions. We study how monetary policy communication should and has worked under such circumstances. Our main results relate to announcements of asset purchase programmes and the use of forward guidance. We show that announcements of asset purchase programmes have lowered market uncertainty, particularly when accompanied by a contextual release of implementation details such as the envisaged size of the programme. We also show that forward guidance reduces uncertainty more effectively when it is state‐contingent or when it provides guidance about a long horizon than when it is open‐ended or covers only a short horizon, and that the credibility of forward guidance is strengthened if the central bank also has embarked on an asset purchase programme.
T3  - CFS working paper series - 578 
KW  - Central Bank Communication
KW  - Unconventional Monetary Policy
KW  - Asset Purchase Programme
KW  - Forward Guidance
Y1  - 2017
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/43864
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-438648
UR  - https://ssrn.com/abstract=3043098
IS  - September 26, 2017
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -