Project description DEENESFRITPL New approach towards a better understanding of monetary policy In the last 25 years, communication has become a core lever of monetary policy. This has important implications for academic research in monetary economics – an area intrinsically linked to the field of policy-making. New approaches and data are needed in order to unravel the complex issues arising from the ongoing research. The EU-funded NewMonEc project aims to provide a ground-breaking research agenda, rooted in important academic questions. The new agenda comprises six pioneering projects across three related themes that emphasise the increasingly important role of central bank communication in policy. Show the project objective Hide the project objective Objective In the last 25 years, communication has become a core lever of monetary policy. This has important implications for academic research in monetary economics -- an area intrinsically linked to the policy environment. The framework change raises new questions, and we must rethink how we empirically study existing questions. We need new approaches and new data. My ground-breaking research agenda, rooted in important academic questions, comprises of 6 pioneering projects across 3 related themes that emphasise the increasingly-important role of central bank communication in policy.Theme I concerns the fundamental empirical question in monetary economics: what is the effect of monetary policy? Though an old question, two projects innovate by using tools from data science to develop new measures of monetary and information shocks from central bank communication. Three projects in Theme II examine the issue of monetary communication and expectations management. The projects will (i) test, for the first time, the Morris-Shin prediction that communication might overly-coordinate expectations formation; (ii) develop a rich, new high-frequency dataset of expectations for EU countries to enable us to better address the questions in this theme; and (iii) develop new surveys and pioneering research on the role of the communication in affecting expectations of the general public.Theme III examines the complex interaction between monetary policy and uncertainty; monetary policy both reacts to shocks to the economy, but it is also a source of policy uncertainty. We shall develop new indices of each type of uncertainty. This unique combination is central to our being able to understand the complex, but vital, relationship.The novelty of the data and the complexity of analysing communication make this research program highly ambitious. Nonetheless, the importance of developing our academic understanding make this agenda incredibly high-return. Fields of science natural sciencescomputer and information sciencesdata sciencesocial scienceseconomics and businesseconomicsmonetary and finances Keywords Monetary Economics Monetary Policy Central Bank Communication Programme(s) H2020-EU.1.1. - EXCELLENT SCIENCE - European Research Council (ERC) Main Programme Topic(s) ERC-2018-COG - ERC Consolidator Grant Call for proposal ERC-2018-COG See other projects for this call Funding Scheme ERC-COG - Consolidator Grant Host institution THE CHANCELLOR, MASTERS AND SCHOLARS OF THE UNIVERSITY OF OXFORD Net EU contribution € 1 560 516,00 Address WELLINGTON SQUARE UNIVERSITY OFFICES OX1 2JD Oxford United Kingdom See on map Region South East (England) Berkshire, Buckinghamshire and Oxfordshire Oxfordshire Activity type Higher or Secondary Education Establishments Links Contact the organisation Opens in new window Website Opens in new window Participation in EU R&I programmes Opens in new window HORIZON collaboration network Opens in new window Total cost € 1 560 516,00 Beneficiaries (1) Sort alphabetically Sort by Net EU contribution Expand all Collapse all THE CHANCELLOR, MASTERS AND SCHOLARS OF THE UNIVERSITY OF OXFORD United Kingdom Net EU contribution € 1 560 516,00 Address WELLINGTON SQUARE UNIVERSITY OFFICES OX1 2JD Oxford See on map Region South East (England) Berkshire, Buckinghamshire and Oxfordshire Oxfordshire Activity type Higher or Secondary Education Establishments Links Contact the organisation Opens in new window Website Opens in new window Participation in EU R&I programmes Opens in new window HORIZON collaboration network Opens in new window Total cost € 1 560 516,00
