Words and deeds in managing expectations: Empirical evidence from an inflation targeting economy

Baranowski, Paweł; Doryñ, Wirginia; Łyziak, Tomasz; Stanisławska, Ewa

doi:10.1016/j.econmod.2020.12.003

Cited by 25 publications

(25 citation statements)

References 79 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…This would result in higher levels of IA quality and more effective implementation of TQM for the whole organisation, if organisations exploit the alignment between TQM and QAIP. This is particularly important for central banks, that are asked to achieve increasingly higher levels of effectiveness, given the outstanding importance of their policy objectives (Bernanke, 2020;Hartley and Rebucci, 2020;Baranowski et al, 2021).…”

Section: Qaip and Tqmmentioning

confidence: 99%

Quality assurance and improvement program: some considerations for central banks

Polizzi

Lupo²,

Testella³

2022

TQM

View full text Add to dashboard Cite

PurposeQuality Assurance and Improvement Program (QAIP) is defined as “an ongoing and periodic assessment of the entire spectrum of audit and consulting work performed by the internal audit (IA) activity”. QAIP is an important component of internal auditors’ commitment to improve internal audit (IA) quality. The pressure towards improvement is urgent for central banks, in light of the vulnerabilities of their IA functions identified by the International Monetary Fund. The authors analyse the professional standards and the literature on IA and QAIP, aiming to propose general considerations to enhance IA quality and to develop and maintain a QAIP, with reference to central banks, also shedding light on the synergies among IA, QAIP and total quality management (TQM).Design/methodology/approachThis paper reviews the most relevant professional standards in light of the professional and academic literature regarding IA quality, QAIP and their relationship with TQM. The analysis of these sources represents an important step to identify general measures to improve IA quality and develop effective QAIP in central banks.FindingsThis analysis shows that it is important to understand the rationale behind the development of an IA function and its theoretical and practical foundation, especially for complex organisations such as central banks. In addition, the authors show that QAIP represents an important tool to exploit the synergies between TQM and IA. These synergies could result in higher levels of quality for the IA function and more effective implementation of TQM within the whole organisation. Lastly, the authors provide practical suggestions to support the implementation of an effective QAIP in central banks and to spread TQM philosophy within the organisation.Originality/valueThe authors contribute to the scant literature on IA quality and QAIP by focusing on central banks and shedding light on the relationship with TQM. Regardless of their importance, these topics have been largely neglected by the extant literature.

show abstract

Section: Qaip and Tqmmentioning

confidence: 99%

Quality assurance and improvement program: some considerations for central banks

Polizzi

Lupo²,

Testella³

2022

TQM

View full text Add to dashboard Cite

show abstract

“…It is worth noting that inflation expectations are at the core of modern macroeconomic theory and are an important determinant of economic fluctuations including stock prices. Therefore, managing expectations is crucial in modern monetary policy (Baranowski et al, 2021). The New Keynesian models (for example, refer to a recent paper of Sims et al, 2021) are widely used in central banking.…”

Section: The Mechanismmentioning

confidence: 99%

The Interconnectedness of Stock Prices, Money, and Credit Across Time and Frequency From 1970 to 2016

Ryczkowski

Zinecker

2022

Technological and Economic Development of Economy

View full text Add to dashboard Cite

This article applies continuous wavelet and maximal overlap discrete wavelet transforms to study the co-movements and the direction of causality between money (M3 and M2), bank credit, credit from all sectors vs. stock price dynamics across time and frequency for 12 developed countries. The time-varying linkages were significant typically for credit rather than money developments. Particularly, these linkages appeared during phases of house and stock price boom and bust at a business cycle frequency. The discovered lead-lag patterns give relatively much time for monetary policy authorities to support their financial stability objectives by imposing restrictions on credit. Closing the channel through which credit and stock prices interact may counteract the rising financial imbalances. This finding holds also for the euro area where the monetary pillar is based on broad money. The new application of wavelets allowed discovering the varying linkages that were not necessarily evident in the standard methods of analysing data.

show abstract

“…Hubert and Labondance (2021) report that that the FOMC statements explain monetary surprises beyond policy announcements and Gonzalez and Tadle (2021) find that the press releases of most central banks converge during periods of international crises. Baranowski et al (2021) use survey data to analyze the expectation channel of monetary policy and find that the impact differs for interest rate and inflation expectations.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Hubert and Labondance (2021) report that that the US Federal Open Market Committee (FOMC) statements explain monetary surprises beyond policy announcements. Baranowski et al (2021) use survey data to analyze the expectation channel of monetary policy and find a significant impact on the interest rate and inflation expectations. As specified by Schmeling and Wagner (2019), the central bank communication impacts market expectations and thus can be associated with the market return.…”

Section: Introductionmentioning

confidence: 99%

Whose speeches impact European markets: ECB's or the national central banks'?

Anand

Basu

Pathak

et al. 2021

Euro Fin Management

View full text Add to dashboard Cite

We quantify the tone from the speeches of the European Central Bank (ECB) as well as that from the national central banks of six leading European nations and analyze its role in explaining the returns of their respective stock market indices. Using recent innovations in financial text analysis, we find evidence that except for France, all nations' stock indices are significantly associated with the tone of speeches delivered by either the national banks or the ECB (or both). For France, the national stock index volatility is found to be associated with its national central bank speech tone.

show abstract

Words and deeds in managing expectations: Empirical evidence from an inflation targeting economy

Cited by 25 publications

References 79 publications

Quality assurance and improvement program: some considerations for central banks

Quality assurance and improvement program: some considerations for central banks

The Interconnectedness of Stock Prices, Money, and Credit Across Time and Frequency From 1970 to 2016

Whose speeches impact European markets: ECB's or the national central banks'?

Contact Info

Product

Resources

About