Andreas Neuhierl, Michael Weber, 31 August 2018

Equity markets are known to move in a predictable manner immediately after policy decisions. This column provides evidence of large predictable movements in stock prices 25 days before policy actions in the US. The shocks continue for another 15 days, and average 4.5%. It suggests monetary policy shocks might not be shocks after all, and that we might be underestimating the effect of monetary policy on asset prices and real consumption.

Colin Ellis, Haroon Mumtaz, Pawel Zabczyk, 06 August 2014

This column reports on empirical evidence showing that monetary policy shocks in the UK had a bigger impact on inflation, equity prices, and the exchange rate during the inflation targeting period. Related changes in the transmission of policy shocks to bond yields point to more efficient management of long run inflation expectations.

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