... assess the seriousness of these concerns by evaluat-ing the behavior of financial markets in the United States, the euro area, and New Zealand in light of the communication strategies of central banks. ... thatit runs the risk of impairing market functioning. In this paper, weevaluated the behavior of financial markets in the United States, the euro area, and New Zealand in light of the communication ... 55. In the event, there were a number of abrupt jumps in longer-term interest rates, and associated market volatility,during the tightening episode that began in 1994 as the market and the FOMCreacted...