Working paper/research report

Publication year: 2020

URL: https://hdl.handle.net/10419/234853

Title of series: MAGKS Joint discussion paper series in economics

Number in series: 2020, 48

Abstract: 

The decision-making process in the ECB's Governing Council remains opaque as the ECB, in contrast to many other central banks, does not publish the votes for or against a policy proposal. In this paper, we construct an index of dissent based on the ECB presidents' answers to journalists' questions during the press conference following each meeting. This narrative account of dissent suggests that dissenting votes are cast frequently. We show that the non-forecastable component of dissent weakens the response of long-term interest rates to policy surprises and thus affects the monetary transmission mechanism. The yield response is significantly stronger under unanimity compared to dissent. This finding is robust to several alternative specifications.

Harvard Citation style: Tillmann, P. (2020) Financial Markets and Dissent in the ECB's Governing Council. (MAGKS Joint discussion paper series in economics, 2020, 48). Marburg: Philipps-University Marburg. https://hdl.handle.net/10419/234853

APA Citation style: Tillmann, P. (2020). Financial Markets and Dissent in the ECB's Governing Council. (MAGKS Joint discussion paper series in economics, 2020, 48). Philipps-University Marburg. https://hdl.handle.net/10419/234853