Lecture by Prof. Peter Tillmann, University of Gie?en, at the Economics Research Seminar on Mai 4, 2021!
Prof. Professor Dr. Peter Tillmann, Universit?t Gie?en will present on Tuesday, Mai 4, 2021, starting at 4 pm online at the BERG Research-Seminar of the Institute of Economics at the University of Bamberg. Title of the talk:
Financial Markets and Dissent in the ECB's Governing Council
Abstract: The decision-making process in the ECB’s Governing Council remains opaque as the ECB, in contrast to many other central banks, does not publish the votes for or against a policy proposal. In this paper, we construct an index of dissent based on the ECB presidents’ answers to journalists’ questions during the press conference following each meeting. This narrative account of dissent suggests that dissenting votes are cast frequently. We show that the non-forecastable component of dissent weakens the response of long-term interest rates to policy surprises and thus affects
the monetary transmission mechanism. The yield response is significantly stronger under unanimity compared to dissent. This finding is robust to several alternative specifications.
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