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The Overdelivery Premium: When Monetary Policy Decisions Exceed Market Expectations

Michael Ehrmann est professeur d'économie à l'École de finance et de gestion de Francfort. Ses recherches portent sur la politique monétaire, la communication des banques centrales, les marchés financiers et les anticipations des ménages. Il a publié de nombreux articles dans des revues universitaires de premier plan. Il a précédemment occupé des postes de haut niveau à la Banque du Canada et à la Banque centrale européenne, où il a contribué à l'analyse des stratégies de transmission monétaire et de communication. Alliant expertise universitaire et expérience politique, il est largement reconnu pour avoir su établir un pont entre la recherche et la pratique bancaire centrale.

Résumé :

A large literature studies the effects of monetary policy based on the identification of monetary policy surprises. This paper tests whether monetary policy surprises exert different effects depending on whether the central bank decision exceeds market expectations (i.e., the central bank “overdelivers”) or falls short of them (the central bank “underdelivers”). Based on a panel dataset covering monetary policy decisions and market expectations for 14 advanced economies over nearly thirty years, we find strong and robust evidence for what we call an “overdelivery premium”, whereby overdelivery exerts substantially larger effects on financial markets. This is especially the case for short-maturity interest rates, where the effect can be up to 9 times as large. The paper then analyses potential channels that can generate this overdelivery premium. Overdelivery does not lead to a revision of the perceived central bank reaction function, but it generates a different effect on macroeconomic expectations of private agents: in response to an overdelivery tightening, economic forecasters revise down their GDP forecasts and revise up their inflation and unemployment forecasts, whereas the revisions have the opposite sign for an underdelivery tightening. The paper also shows that the results are unique to monetary policy surprises. They do not carry over to other macroeconomic surprises, suggesting that the results do not stem from psychological biases such as reference-dependent utility.

Accessibilité
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Date et heure
6 févr. 2026
14 h 30 à 16 h
Formule et lieu
En personne
Pavillon Vanier (VNR)
Langue
Anglais
Auditoire
Professeurs, Étudiants cycles supérieurs
Organisé par
Département de Science économique