Italo Morais Santos, a visiting assistant professor in economics, along with another assistant professor published an article titled, “The Impact of Monetary Policy Shocks – Do not rule out Central Bank Information Effects or Economic News.”
Their study highlights the importance of considering economic news and central bank information effects when analyzing monetary policy. It explores the complex impacts of monetary policy and central bank information shock on the economy, tackling the challenges that arise from the central bank’s systematic response to economic conditions.
Santos and his colleague were able to differentiate between pure monetary policy shocks and those influenced by economic news, showing that monetary policy shocks have stronger and longer-lasting effects on output and prices than central bank information shocks do.