Does the Beige Book Move Financial Markets?
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Issue Date
2005-07Author
Zavodny, Madeline
Ginther, Donna K.
Publisher
Southern Economic Association
Type
Article
Article Version
Scholarly/refereed, publisher version
Published Version
http://journal.southerneconomic.org/Metadata
Show full item recordAbstract
About two weeks prior to each Federal Open Market Committee (FOMC) meeting, the Federal
Reserve releases a description of economic activity in a document called the Beige Book. By creating
a quantitative index of these qualitative reports, we examine whether the content of the Beige Book
affects asset prices. The results indicate that more positive Beige Book reports on economic growth
are associated with increases in interest rates, particularly intermediate- and long-term rates, but not after controlling for several other macroeconomic indicators. The results are consistent with markets viewing the report as a summary indicator of economic growth but not of monetary policy moves in the near term.
Description
This is the published version.
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Citation
“Does the Beige Book Move Financial Markets?” Southern Economic Journal 72 (July 2005): 138-151 (with Madeline Zavodny).
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