Central banks pursuing unconventional monetary policies gain considerable credibility by having asset purchase programmes (APPs), a study by the European Central Bank argues.

In Communication of monetary policy in unconventional times, Günter Coenen et al carry out a detailed analysis both of how central banks communicate unconventional policy decisions and of how credible markets find them. The authors use data on the ways in which the ECB, the Federal Reserve, the Bank of Japan, the Bank of