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- Title
Learning the rules of the new game? Comparing the reactions in financial markets to announcements before and after the Bank of England's operational independence.
- Authors
Lasaosa, Ana
- Abstract
In this article, the author presents information on a study related to the price variation with an analysis of trading activity in Great Britain. The author found that the differences in trading activity between the two periods tend to mirror the differences in price variation. A separate analysis of unexpected announcements and the surprise component of each announcement reveals a similar pattern. Finally, a comparison of the two halves of the post-independence period shows that the reactions to macroeconomic announcements are indeed stronger in the second half. There are tentative signs of a more muted reaction to interest changes, but they lack statistical significance. An increase in transparency was not the only change brought about by operational independence.
- Subjects
UNITED Kingdom; PRICE maintenance; MACROECONOMICS; PRICE variance; STATISTICS; ECONOMIC policy
- Publication
Bank of England Quarterly Bulletin, 2005, Vol 45, Issue 2, p179
- ISSN
0005-5166
- Publication type
Article