Words that shake traders : The stock market's reaction to central bank communication in real time

This paper investigates the effects of Federal Reserve's decisions and statements on U.S. stock and volatility indices (Dow Jones Industrial Average, NASDAQ 100, S&P 500, and VIX) using a high-frequency event-study analysis. I find that both the surprise component of policy actions and official communication have statistically significant and economically relevant effects on equity indices, with statements having a much greater explanatory power of the reaction of stock prices to monetary policy. For instance, around 90% of the explainable variation in S&P 500 is due to the surprise component of Fed's statements. This paper also shows that equity indices tend to incorporate FOMC monetary surprises within 40 min from the announcement release. Finally, I find that these results are robust along several dimensions. In particular, I consider different estimators, such as the Generalized Empirical Likelihood, and I extend the sample to include the recent period of heightened financial stress. This sensitivity analysis corroborates that central bank communication about its future policy intentions is a key driver of stock returns.     

Domestic and international economic changes. Embarrassing correspondences

The breakdown of the socialist regimes of the east European countries has been incredibly fast. The subsequent changes in the international setting may imply much slower processes. Unified Germany is building up a vast area of influence ranging from the Baltic to the Adriatic sea. The former Moslem republics of the Soviet Union may fall instead under the influence of Turkey, supported by the USA. The presence of the USA in the Middle East and the American influence over Israel, Saudi Arabia, and possibly Iran, might help to build up a huge Moslem area controlled by the USA. This implies questioning the pre-existing national borderlines, a problem in which ethnic conflicts seem to be playing a role. The three great economic areas of the world exhibit a common tendency to become three strongly protected commercial areas. In the domestic structures of the main capitalist countries very similar changes are taking place: a general fall in the ideals of social justice, replaced by the ideology of individual effort and efficiency; a decline in the belief that any individual should be protected from the cradle to the grave, a belief replaced by the ideal of a scoiety made up of self-made men; a decline in the supply of schooling services, health care, old-age pensions and collective action in general, in favour of individual initiative and privatization. A consequence of such changes will be a sharp increase in personal and regional inequalities.     

EU-wide money and cross-border holdings

EU-Wide Money and Cross-Border Holdings. —The paper explores the economic properties of several measures of EU-wide money that include different definitions of cross-border holdings (CBHs). ‘Very broad’ aggregates are poorly linked with EU-wide income and price developments; in contrast, the demand for aggregates which is ‘focused on the European Union’ (which hinge on the inclusion of CBHs denominated in EU currencies and/or kept within the EU) is shown to be stable and predictable. Although aggregates extended to include CBHs do not yet outperform the traditional measure of broad money, they are likely to become an increasingly important tool for monetary analysis at the EU level.     

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The European Green Deal — More Than Climate Neutrality

Intereconomics - The European Green Deal aims at climate neutrality for Europe by 2050, implying a significant acceleration of emission reductions. To gain the necessary support, it needs to reduce...     

Defining Supply Chain Management: In the Past,Present, and Future

The article titled “Defining Supply Chain Management” published in 2001 in the Journal of Business Logistics has been cited over 4,900 times in the last 17 years. In this paper, we first provide a historical review of how the article originated and the contributions the article made to both the theory and practice of supply chain management (SCM). Next, we highlight the key market and technological changes that have emerged in SCM followed by how the theory proposed in the 2001 article can still be relevant to support SCM research and practice going forward. We also propose ways of configuring a supply chain and partnering across companies to serve customers in an optimal way. We conclude with a call for research on developing new frameworks to better describe, explain, predict, and shed light on the evolving nature of SCM.