Monetary Policy Transmission Mechanisms: Evidence on the Information Channel

The estimation of the effects of monetary policy on the real economy is a key topic in the economic literature. In order to estimate these effects, it is necessary to correctly evaluate all the monetary transmission mechanisms. Various high-frequency identification approaches suggest the presence of an additional transmission channel of monetary policy: the so called “Information channel”. By considering economic data in relation with the monetary policy decisions of the Federal Reserve in the United States, it is possible to evaluate the relevance of this channel. The consideration of this monetary policy transmission channel is important to have a better understanding on the influence of the central banks on the economy.