Furor over the Fed: A President’s Tweets and Central Bank Independence
| Autor: | Dmitry Matveev, Antoine Camous |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Economics and Econometrics
media_common.quotation_subject 05 social sciences Geography Planning and Development Monetary policy Financial market Financial system Independence Fiscal policy Federal funds 0502 economics and business Credibility Market data Economics 050207 economics Futures contract 050205 econometrics media_common |
| Zdroj: | CESifo Economic Studies. 67:106-127 |
| ISSN: | 1612-7501 1610-241X |
| DOI: | 10.1093/cesifo/ifaa020 |
| Popis: | We illustrate how financial market data are informative about the interactions between monetary and fiscal policy. Federal funds futures are private contracts that reflect investor’s expectations about future monetary policy decisions. By relating price movements of these contracts with President Trump’s tweets on monetary policy, we explore how financial market participants have perceived attempts by the President to influence monetary policy decisions. Our results indicate that market participants expected the Federal Reserve Bank to adjust monetary policy in the direction suggested by President Trump. (JEL codes: E44, E52, and E58) |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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