Monetary Policy Networks and Asset Prices


 

Abstract:

I study the effect of monetary policy communication on asset prices. Since reaching the zero lower bound in many countries, the traditional monetary policy that influences long interest rates by controlling the short rate has lost its power. Hence,it is increasingly important how central banks communicate and what information they provide, especially in crisis times. Worse than expected monetary policy communication can propagate negative macroeconomic shocks, leading to contagion across asset classes, both domestically and internationally. I plan to build theoretical models and confirm their predictions in sovereign bond and exchange rate markets using a new, comprehensive set of international monetary policy.

Type:

Public (National)

Funder:

DFF/FSE/FP1

Status:

Running

Start Date:

01-07-2018

End Date:

30-06-2020

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