Dissent in Monetary Policy Decisions: Effects, Channels and Implications

Christophe Blot (), Paul Hubert and Fabien Labondance
Additional contact information
Christophe Blot: EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique

SciencePo Working papers Main from HAL

Abstract: We investigate whether dissent in monetary policy committees affect asset prices. We exploit a feature of the ECB communication for identification: the revelation of dissent during press conferences is separated from policy decision announcements. Following a narrative approach, we compute a novel granular index of ECB dissent for each instrument and identify the dissent direction. Using tick data, we isolate asset price changes exactly when dissent is revealed. Dissent has a strong negative effect on stock prices, that operates specifically around status quo decisions. Dissent is a key driver of stock prices on these days, explaining one-third of their variation.

Keywords: Asset prices; Monetary Policy Committee; European Central Bank; Disagreement; Bad news. (search for similar items in EconPapers)
Date: 2025
Note: View the original document on HAL open archive server: https://hal.science/hal-05158109v1
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hal.science/hal-05158109v1/document (application/pdf)

Related works:
Working Paper: Dissent in Monetary Policy Decisions: Effects, Channels and Implications (2025)
Working Paper: Dissent in Monetary Policy Decisions: Effects, Channels and Implications (2025)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-05158109

Access Statistics for this paper

More papers in SciencePo Working papers Main from HAL
Bibliographic data for series maintained by Contact - Sciences Po Departement of Economics ().