Does central bank communication policy influence business executives’ opinion?

In Do Hwang, Thomas Lustenberger and Enzo Rossi in this SNB paper look at impact of central bank communications on business executives:

We analyze the economic impact of central banks sensed by business executives in a sample of 61 countries from 1998 to 2016. Based on a survey conducted by the Institute for Management Development (IMD), we find compelling evidence that intensive central bank communication worsens the perceived impact.

During the global financial crisis (GFC), this effect became even stronger. In contrast, economic growth and a positive output gap improve the opinion executives have of their central bank’s impact on the economy. Moreover, although less robustly, higher unemployment, and higher short-term interest rates worsen executives’ opinion, while market uncertainty improves it.

The level of inflation and an inflation targeting regime, central bank independence and transparency, financial crises, the zero lower bound constraint, forward guidance, the performance of the stock exchange, and the volatility of the exchange rate seem to be unimportant in this regard.

This is interesting. It raises questions whatever we are made to think is important in central banking.

One Response to “Does central bank communication policy influence business executives’ opinion?”

  1. CLIC AQUÍ Says:

    Todas las instituciones cobran comisiones de una forma u otra, lo importante es analizar qué ofrecen y comparar entre diferentes bancos para elegir el que te brinde menores costos e intereses más baratos. Moverte de banco por servicios más económicos te garantiza un ahorro mensual en tu gasto familiar.

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