Abstract This paper analyses the impact of central bank interventions in inflation targeting regime. The results empirical studies this show if there is a shock exchange rate, which would lead to depreciation may decide mush instability on foreign market with interventions, thereby preventing sudden rate depreciation, then require smaller reaction by interest rate. Namely, through greatly absor...

In this paper, we argue that monetary policy in the form of central bank communication can shape long-term interest rates by changing risk premia. Using high-frequency movements default-free and equity, show communications European Central Bank on regular announcement days led to a significant yield spread between peripheral core countries during sovereign debt crisis increasing credit We also ...

In this paper, I revisit an old question …rst studied by Rogo¤ (1984) –should central banks pursue objectives that di¤er systematically from social welfare? I investigate how the answer to this question is affected by the degree of transparency that characterizes monetary policy. When the policy regime is one of discretion and the central bank is opaque, changes in the policy interest rate have...