How the Fed moves markets : central bank analysis for the modern era / Evan A. Schnidman & William D. MacMillan.

Format:

Book

Author/Creator:

Schnidman, Evan A., 1985- author.

MacMillan, William D., 1981- author.

Language:

English

Subjects (All):

Board of Governors of the Federal Reserve System (U.S.).

Monetary policy--United States.

Monetary policy.

United States.

Banks and banking, Central--United States.

Banks and banking, Central.

Physical Description:

198 pages : illustrations, charts ; 22 cm

Place of Publication:

New York, NY : Palgrave Macmillan, [2015]

Summary:

Central banks have a profound impact on financial markets, and investors struggle to keep informed about their complex policy decisions. Technological and financial developments have transformed the US Federal Reserve Bank from a financial black box into a vocal, increasingly transparent institution-and the result is such a wealth of textual data that clues to future policy decisions may be lost among the details. Schnidman and MacMillan present a solution to this problem by keeping track of those details. They demonstrate how the latest advances in automated text analysis, combined with the precision of domain expertise, are the keys to understanding how central banks move markets with their words. The authors outline a method to not only examine every piece of every central bank communication, but to do it in a way that is completely comprehensive and unbiased while quickly yielding hard, quantitative data that can be put to work in modern financial models. Book jacket.

Contents:

Part I Emergence and Evolution: The Story of the Fed

1 Origins: From Chaos to Structure 9

2 Independence: Wars, Depression, and Politics 17

3 Centralization: The Rise of Technocracy 31

4 Transparency: Data Meets Democracy 39

Part II Fed Watching: Sentiment Analysis and Data-Driven Investing

5 The Briefcase Watch: Fed Watching at Its Finest? 51

6 Data-Driven Fed Watching: Comprehensive, Unbiased, and Quantitative 59

7 Fixed-Income Investing: Fed Sentiment Drives Bonds 69

8 Equity Market Investing: Macro Matters 79

9 Forecasting Policy: Market Response to Fed Communication Trends 89

10 Forex Investing: Central Bank Sentiment Data across the Globe 99

Part III Global Monetary Policy: Analyzing Central Banks around the World

11 ECB Sentiment: Decoding a Complex Monetary Union 115

12 BOE Sentiment: The Origin of Modern Central Bank Communications 127

13 BOJ Sentiment: Monetary Clues in Lost Decades 137

14 RBA Sentiment: Australia as a Proxy for China 147

15 Global Sentiment: International Central Bank Transparency 159.

Notes:

Includes bibliographical references and index.

ISBN:

9781137432575

1137432578

OCLC:

917340158