The economic impact of yield curve compression: Evidence from euro area forward guidance and unconventional monetary policy

Goodhead, Robert

doi:10.1016/j.euroecorev.2024.104716

European Economic Review

2024

DOI: 10.1016/j.euroecorev.2024.104716

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The economic impact of yield curve compression: Evidence from euro area forward guidance and unconventional monetary policy

Robert Goodhead

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Cited by 2 publications

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Understanding the use of unconventional monetary policy for portfolio decarbonisation in Europe

Muñiz,

Larkin,

Corbet

2025

Journal of International Money and Finance

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Understanding the use of unconventional monetary policy for portfolio decarbonisation in Europe

Muñiz,

Larkin,

Corbet

2025

Journal of International Money and Finance

View full text Add to dashboard Cite

Monetary policy communication shocks and the macroeconomy

Goodhead,

Kolb

2024

Economica

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Using high‐frequency identification, we provide evidence that Fed communication surprises have larger macroeconomic effects than surprise actions. Three ingredients are central to show this: structurally distinguishing between Fed actions and communication, controlling for the Fed information effect, and including the surprise measures directly in a vector autoregression (VAR) system instead of using them as instruments. We also compare the macroeconomic effects of Fed communication surprises relating to varying horizons into the future. Fed communication with a two‐year horizon appears most powerful during the effective lower‐bound period, consistent with theoretical predictions regarding Fed forward guidance.

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The economic impact of yield curve compression: Evidence from euro area forward guidance and unconventional monetary policy

Cited by 2 publications

References 82 publications

Understanding the use of unconventional monetary policy for portfolio decarbonisation in Europe

Understanding the use of unconventional monetary policy for portfolio decarbonisation in Europe

Monetary policy communication shocks and the macroeconomy

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