Do Markets Care Who Chairs the Central Bank?

Kenneth Kuttner and Adam Posen

No 2007-05, Department of Economics Working Papers from Department of Economics, Williams College

Abstract: This paper assesses the effects of central bank governor appointments on financial market expectations of monetary policy. To measure these effects, we assemble a new dataset of appointment announcements from 15 countries, and conduct an event study analysis on exchange rates, bond yields, and stock prices. The analysis reveals a significant reaction of exchange rates and bond yields to unexpected appointments. The reactions are not unidirectional, and thus do not suggest new governors suffer from a generic credibility problem. Federal Reserve chairman appointments stand out in terms of their unusually pronounced effects on financial markets.

Pages: 43 pages
Date: 2007-05
References: Add references at CitEc
Citations:

Published in Journal of Money, Credit and Banking, March/April 2010.

Downloads: (external link)
http://www.nber.org/papers/w13101.pdf Full text (application/pdf)

Related works:
Journal Article: Do Markets Care Who Chairs the Central Bank? (2010)
Journal Article: Do Markets Care Who Chairs the Central Bank? (2010)
Working Paper: Do Markets Care Who Chairs the Central Bank? (2007)
Working Paper: Do Markets Care Who Chairs the Central Bank? (2007)
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:wil:wileco:2007-05

Ordering information: This working paper can be ordered from

The price is Free.

Access Statistics for this paper

More papers in Department of Economics Working Papers from Department of Economics, Williams College Williamstown, MA 01267. Contact information at EDIRC.
Bibliographic data for series maintained by Greg Phelan ().