MONEY SUPPLY ANNOUNCEMENTS AND MARKET REACTIONS IN AN OPEN-ECONOMY Academic Article uri icon

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abstract

  • An open economy model of the money supply announcement-financial market reaction phenomenon under policy anticipations is formulated, whose major divergence from earlier models is the prediction that short-term interest rate movements need not be positively correlated with unexpectedly high monetary growth. While at variance with the most consistent empirical regularity in the United States, this prediction in fact accords with previous empirical findings for both the United Kingdom and Canada. Copyright 1990 by Ohio State University Press.

publication date

  • May 1, 1990