Sandra Schmidt Book order

This paper investigates why financial market experts misperceive the interest rate policy of the European Central Bank (ECB). Assuming a Taylor-rule-type reaction function of the ECB, we use qualitative survey data on expectations about the future interest rate, inflation, and output to discover the sources of individual interest rate forecast errors. Based on a panel random coefficient model, we show that financial experts have systematically misperceived the ECB's interest rate rule. However, although experts tend to overestimate the impact of inflation on future interest rates, perceptions of monetary policy have become more accurate since clarification of the ECB's monetary policy strategy in May 2003. We find that this improved communication has reduced disagreement over the ECB's response to expected inflation during the financial crisis. -- Central bank communication ; Interest rate forecasts ; Survey expectations ; Panel random coefficient model

Many central banks implement monetary policy by steering the interest rates at the very short end of the yield curve. Interest rate changes, which are induced by central banks at the short end of the yield curve are transmitted to longer-term maturities. The effectiveness of the transmission process to longer term interest rates can be enhanced by a transparent framework of central banks. The aim of this thesis is to explore how central banks can effectively implement monetary policy decisions at the short end of the yield curve and how they can manage interest rate expectations to facilitate the transmission process to longer-term interest rates. To this end, the thesis is divided into two parts. The first part consists of two papers, which focus on the behavior of the European Central Bank (ECB) and the Federal Reserve (Fed) in the overnight market in the euro zone and the U. S., respectively. Using a set of survey data of institutional investors, the second part of the thesis investigates how market participants assess the reaction of the ECB to macroeconomic variables and whether a more precise central bank communication has improved the perception of the survey participants.

Spielerisch Englisch lernen mit fröhlichen Wimmelbildern: 28 detaillierte Illustrationen zeigen typische Themen aus dem Kinderalltag. So können zu Hause oder in Kindergarten und Vorschule rund 800 Wörter auf Englisch und auf Deutsch gelernt werden.