Michael Ehrmann

TL;DR: The authors survey the literature on central bank communication and find that communication can be an important and powerful part of the central bank's toolkit since it has the ability to move financial markets, to enhance the predictability of monetary policy decisions, and potentially to help achieve central banks' macroeconomic objectives.

TL;DR: In this article, a comprehensive comparison of the structure of banking and financial markets in the euro area is presented, based on which several hypotheses about the role of banks in monetary policy transmission are developed.

TL;DR: This paper analyzed the transmission of the 2007 to 2009 financial crisis to 415 country-industry equity portfolios and used a factor model to predict crisis returns, defining unexplained increases in factor loadings and residual correlations as indicative of contagion.

TL;DR: This paper analyzed the effects of U.S. monetary policy on stock markets and found that individual stocks react in a highly heterogeneous fashion to monetary policy shocks and relate this heterogeneity to financial constraints and Tobin's q.

TL;DR: In this article, the authors analyzed the transmission of US monetary policy shocks to global equity markets and the macroeconomic determinants of the underlying transmission process, and found that there is a substantial cross-country heterogeneity in reactions across 50 equity markets worldwide, with returns falling on average around 2.7% in response to a 100 basis point tightening of U.S. monetary policy, but ranging from a zero response in some to a reaction of 5% or more in other markets.