Central bank mandates: How differences can influence the content and tone of central bank communication

Bohl, Martin T.; Kanelis, Dimitrios; Siklos, Pierre L.

doi:10.1016/j.jimonfin.2022.102752

Cited by 13 publications

(2 citation statements)

References 35 publications

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“…Due to the short time series, initial studies report conflicting evidence regarding the materiality of the possible pandemic’s impact on central banks’ communication (Fraccaroli et al. , 2022; Bohl, Kanelis, & Siklos, 2023).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Scholars observe no significant differences in monetary policy communication in response to the pandemic between central banks from "Western European" and postcommunist countries. Due to the short time series, initial studies report conflicting evidence regarding the materiality of the possible pandemic's impact on central banks' communication (Fraccaroli et al, 2022;Bohl, Kanelis, & Siklos, 2023).…”

Section: Literature Reviewmentioning

confidence: 99%

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Communicating financial stability in monetary policy reports: a text-mining experiment in postcommunist countries

Kurowski,

Smaga

2023

CEMJ

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PurposeFinancial stability has become a focal point for central banks since the global financial crisis. However, the optimal mix between monetary and financial stability policies remains unclear. In this study, the “soft” approach to such policy mix was tested – how often monetary policy (in inflation reports) analyses financial stability issues. This paper aims to discuss the aforementioned objective.Design/methodology/approachA total of 648 inflation reports published by 11 central banks from post-communist countries in 1998-2019 were reviewed using a text-mining method.FindingsResults show that financial stability topics (mainly cyclical aspects of systemic risk) on average account for only 2%of inflation reports’ content. Although this share has grown somewhat since the global financial crisis (in CZ, HU and PL), it still remains at a low level. Thus, not enough evidence was found on the use of a “soft” policy mix in post-communist countries.Practical implicationsGiven the strong interactions between price and financial stability, this paper emphasizes the need to increase the attention of monetary policymakers to financial stability issues.Originality/valueThe study combines two research areas, i.e. monetary policy and modern text mining techniques on a sample of post-communist countries, something which to the best of the authors’ knowledge has not been sufficiently explored in the literature before.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Communicating financial stability in monetary policy reports: a text-mining experiment in postcommunist countries

Kurowski,

Smaga

2023

CEMJ

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The ECB press conference statement: deriving a new sentiment indicator for the euro area

Kanelis,

Siklos

2024

Int. J Fin Econ

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We analyse the introductory statements of the ECB president and derive new sentiment indicators for the euro area based on a novel approach. To evaluate sentiment, we utilize a Large Language Model, namely FinBERT, which classifies the verbal sentiment of economics and finance‐related textual data. We find that the ECB's conveyed sentiment about monetary policy, which is influenced by the economic outlook and the state of the euro area macroeconomy as expressed in speeches, plays a significant role in shaping the content of press conferences following a governing council decision. In contrast, speech sentiment regarding financial stability does not significantly influence introductory statements.

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One money, one voice? Evaluating ideological positions of euro area central banks

Feldkircher,

Hofmarcher,

Siklos

2024

European Journal of Political Economy

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Central bank mandates: How differences can influence the content and tone of central bank communication

Cited by 13 publications

References 35 publications

Communicating financial stability in monetary policy reports: a text-mining experiment in postcommunist countries

Communicating financial stability in monetary policy reports: a text-mining experiment in postcommunist countries

The ECB press conference statement: deriving a new sentiment indicator for the euro area

One money, one voice? Evaluating ideological positions of euro area central banks

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