Central Bank Talk: Does it Matter and Why?

Paper 'Central Bank Talk: Does it Matter and Why?' presented by Donald Kohn and a senior Federal Reserve economist. Statements released by the Federal Open Market Committee (FOMC) and congressional testimony by Chairman Greenspan are found to significantly affect market interest rates, indicating that central bank "talk" conveys important information to market participants. By contrast, the paper finds, statements raising questions about asset valuations typically have not generated a

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