Type
Working paper
Titre
State-Dependent Effects of Monetary Policy: The Central Bank Information Channel
Éditeur
Paris : OFCE
Collection
Working Paper de l'OFCE : 2019-04
Mots clés
Monetary policy, Information processing, signal extraction, Market based inflation expectations, Central bank projections, Real time forecasts
Résumé
FR
When the central bank and private agents do not share the same information, private agents may not be able to appreciate whether monetary policy responds to changes in the macroeconomic outlook or to changes in policy preferences. In this context, this paper investigates whether the publication of the central bank macroeconomic information set modifies private agents’ interpretation of policy decisions. We find that the sign and magnitude of the effects of monetary policy depend on the publication of policymakers’ macroeconomic views. Contractionary monetary policy has negative effects on inflation expectations and stock prices only if associated with inflationary news
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