Journal of Monetary Economics 2019 DOI: 10.1016/j.jmoneco.2019.08.011 View full text
Zeno Enders, Franziska Hünnekes, Gernot J. Müller

Abstract: We assess empirically whether monetary policy announcements impact firm expectations. Two features of our data set are key. First, we rely on a survey of production and price expectations of German firms, that is, expectations of actual price setters. Second, we observe the day on which firms submit their answers to the survey. We compare the responses of firms before and after monetary policy surprises and obtain two results. First, firm expectations respond to policy surprises. Second, the response becomes w…

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