| dc.description.abstract | Inspired by previous research, we are going to perform an empirical analysis to
test the effectiveness of forward guidance in Norway on market expectations
using high-frequency data and an event-study approach. Further, we will
investigate how forward guidance affects the term structure in Norway using the
Nelson-Siegel-Svensson framework. More specifically, we will investigate
Norges Bank’s press conferences and the following statements to examine how
market expectations are influenced by monetary policy actions and statements.
Using a two-dimensional approach, we find supporting evidence and conclude
that forward guidance influences money market rates. Furthermore, by creating
yield curves we examine relations between macro variables and the term structure
of interest rates. We find evidence coinciding with the theory presented by
Rudebusch and Wu, albeit be | nb_NO |
