Konferenzbeitrag

Do Markets Care About Central Bank Governor Changes? Evidence from Emerging Markets

Central bank governor changes in emerging markets may convey important signals about future monetary policy. Based on a new daily data set, this paper examines the reactions of foreign exchange markets, domestic stock market indices and sovereign bond spreads to central bank governor changes. The data cover 20 emerging markets over the period 1992-2006. We find that the replacement of a central bank governor negatively affects financial markets on the announcement day. This negative effect is mainly driven by irregular changes, i.e., changes occurring before the scheduled end of tenure, sending negative signals about perceived central bank independence. Personal characteristics of the central banker, to the contrary, are less important for market reactions. We find no evidence that changes in the central banker's conservatism affect the reactions of the markets. Finally, market reactions are similar in countries with high and low degrees of central bank independence.

Sprache
Englisch

Erschienen in
Series: Proceedings of the German Development Economics Conference, Zürich 2008 ; No. 29

Klassifikation
Wirtschaft
Central Banks and Their Policies
Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
International Finance: General
Information and Market Efficiency; Event Studies; Insider Trading
Thema
central bank governor turnover
monetary policy
emerging markets
risk premium

Ereignis
Geistige Schöpfung
(wer)
Dreher, Axel
Moser, Christoph
Ereignis
Veröffentlichung
(wer)
Verein für Socialpolitik, Ausschuss für Entwicklungsländer
(wo)
Göttingen
(wann)
2008

Handle
Letzte Aktualisierung
10.03.2025, 11:46 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Konferenzbeitrag

Beteiligte

  • Dreher, Axel
  • Moser, Christoph
  • Verein für Socialpolitik, Ausschuss für Entwicklungsländer

Entstanden

  • 2008

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