Anna Cieslak, Andreas Schrimpf, 22 October 2018

Central bank communication affects asset prices and therefore the broader economy, but the channels through which this happens are not clear. The column proposes a novel approach to distinguishing the types of news. In more than half of communication events, the non-monetary component dominates the market reaction to central bank communication.

Barry Eichengreen, Poonam Gupta, Anderson Ospino, 04 July 2016

The surprise outcome of the UK’s EU membership referendum is in some ways analogous to the ‘Taper Tantrum’ (the correction in financial markets following Ben Bernanke’s May 2013 suggestion that the US central bank was contemplating reducing its rate of security purchases). This column looks at whether the Brexit Surprise has had analogous effects on emerging markets. Emerging economies felt a strong negative impact that was larger and more widespread than in the case of the Taper Tantrum. Where the Taper Tantrum was mainly a financial shock, the Brexit Surprise is evidently perceived as having real as well as financial consequences.

Events

CEPR Policy Research