The Bundesbank's Communications Strategy and Policy Conflicts with the Federal Government

Bohl MT, Siklos PL


Zusammenfassung
In this paper we provide an estimate of the likelihood of conflict between the federal government and the Bundesbank for the 1989-1998 period. We rely on a novel proxy for the impact of public communication by Bundesbank officials on the probability of conflict, in addition to interest rate, exchange rate, money supply behavior, as well as electoral influences. The empirical evidence is consistent with the view that speeches by the Bundesbank president dealing with inflation and economic policy are a positive source of conflict in a probabilistic sense. Conflict was not a constant but flared up at times of economic stress and could be exacerbated by the "talking" of Bundesbank officials.

Schlüsselwörter
central bank independence business cycles countries behavior



Publikationstyp
Aufsatz (Zeitschrift)

Begutachtet
Ja

Publikationsstatus
Veröffentlicht

Jahr
2005

Fachzeitschrift
Southern Economic Journal

Band
72

Ausgabe
2

Erste Seite
395

Letzte Seite
409

Seiten
395-409

Sprache
Englisch

ISSN
0038-4038

Affiliierungen
European Univ Viadrina Frankfurt Oder, Wilfrid Laurier Univ, European Univ Viadrina Frankfurt Oder