How the Fed Moves Markets

Central Bank Analysis for the Modern Era

  • Authors
  • Evan A. Schnidman
  • William D. MacMillan

Table of contents

  1. Front Matter
    Pages i-x
  2. Introduction

    1. Evan A. Schnidman, William D. MacMillan
      Pages 1-5
  3. Emergence and Evolution: The Story of the Fed

    1. Front Matter
      Pages 7-7
    2. Evan A. Schnidman, William D. MacMillan
      Pages 9-16
    3. Evan A. Schnidman, William D. MacMillan
      Pages 17-30
    4. Evan A. Schnidman, William D. MacMillan
      Pages 31-38
    5. Evan A. Schnidman, William D. MacMillan
      Pages 39-48
  4. Fed Watching: Sentiment Analysis and Data-Driven Investing

    1. Front Matter
      Pages 49-49
    2. Evan A. Schnidman, William D. MacMillan
      Pages 51-58
    3. Evan A. Schnidman, William D. MacMillan
      Pages 59-67
    4. Evan A. Schnidman, William D. MacMillan
      Pages 69-77
    5. Evan A. Schnidman, William D. MacMillan
      Pages 79-88
    6. Evan A. Schnidman, William D. MacMillan
      Pages 89-98
    7. Evan A. Schnidman, William D. MacMillan
      Pages 99-111
  5. Global Monetary Policy: Analyzing Central Banks around the World

    1. Front Matter
      Pages 113-113
    2. Evan A. Schnidman, William D. MacMillan
      Pages 115-125
    3. Evan A. Schnidman, William D. MacMillan
      Pages 127-136
    4. Evan A. Schnidman, William D. MacMillan
      Pages 137-146
    5. Evan A. Schnidman, William D. MacMillan
      Pages 147-157
    6. Evan A. Schnidman, William D. MacMillan
      Pages 159-181

About this book

Introduction

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.

This book presents a solution to this problem by keeping track of those details. Schnidman and MacMillan 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.

Keywords

Federal Reserve Bank European Central Bank Quantitative Monetary policy bank central bank China communication depression efficiency equity market finance financial market financial markets forecasting monetary policy monetary union research transparency

Bibliographic information

  • DOI https://doi.org/10.1057/9781137432582
  • Copyright Information The Editor(s) (if applicable) and The Author(s) 2016
  • Publisher Name Palgrave Macmillan, New York
  • eBook Packages Economics and Finance
  • Print ISBN 978-1-349-56298-5
  • Online ISBN 978-1-137-43258-2
  • About this book