Inflation and Monetary Poliy
Publications
Other contributions
The power of central bank communication
- Monetary Policy
- KOF Bulletin
A recent study by KOF analyses the impact that central bank communication has on financial markets, which are a key transmission channel for monetary policy. The findings show that monetary policy speeches are an important source of information for the formation of expectations in financial markets. The findings also suggest that volatility in financial markets increases when a central bank communicates too complexly.
“The battle against inflation has not yet been won”
- Inflation
- KOF Bulletin
- Monetary Policy
Alexis Perakis, monetary policy expert at KOF, talks in this interview about his predictions for inflation, interest rates and the Swiss franc exchange rate this year. He considers the current debate about interest-rate cuts to be premature.
Media formats and their role in the perception of monetary policy
- Monetary Policy
- KOF Bulletin
In today’s ever-changing global economy, clear and effective communication by central banks is crucial to build trust in their policies and manage public expectations. A new study by researchers at KOF and ETH uses an experiment to investigate how central banks influence inflation expectations through different media formats and which communication formats are most effective.
How monetary policy can be deciphered using language analysis
- Monetary Policy
- KOF Bulletin
Central banks shape global financial markets through their carefully crafted speeches. Words often trigger immediate market reactions and provide a more timely signal than many regularly updated economic indicators. When compiling its analysis, KOF uses natural language processing to decode indicators from central bank transcripts that make it possible to replicate and predict market movements in a timely manner.
Bank regulation: the many pitfalls of bail-in bonds
- Banking
- KOF Bulletin
- Monetary systems
- Monetary Policy
At first glance, ‘bail-in bonds’ are an attractive way of recapitalising banks in distress. In the case of Credit Suisse, however, according to FINMA, loss buffers amounting to over CHF 50 billion were not activated for recapitalisation purposes because no compulsory restructuring was ordered. Bail-in bonds, which can only be written off or converted into equity through state intervention, present a number of pitfalls, which are discussed in this article.