TY  - JOUR
AU  - Kuttner,Kenneth N.
AU  - Posen,Adam S.
TI  - Do Markets Care Who Chairs the Central Bank?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13101
PY  - 2007
Y2  - May 2007
UR  - http://www.nber.org/papers/w13101
L1  - http://www.nber.org/papers/w13101.pdf
N1  - Author contact info:
Kenneth Kuttner
 c/o Economics Department
Williams College
Williamstown MA 01267
Tel: 440/775-8592
E-Mail: kenneth.n.kuttner@williams.edu

Adam Posen
Peterson Institute for International Economics
1750 Massachusetts Ave., NW
Washington, DC  20036-1903
Tel: 202-328-9000
Fax: 202-328-5432
E-Mail: aposen@petersoninstitute.org
AB  - This paper assesses the effects of central bank governor appointments on financial market expectations of monetary policy. To measure these effects, we assemble a new dataset of appointment announcements from 15 countries, and conduct an event study analysis on exchange rates, bond yields, and stock prices. The analysis reveals a significant reaction of exchange rates and bond yields to unexpected appointments. The reactions are not unidirectional, and thus do not suggest new governors suffer from a generic credibility problem. Federal Reserve chairman appointments  stand out in terms of their unusually pronounced effects on financial markets.
ER  -