How Central Bank Mandates Influence Content and Tone of Communication Over Time

Martin T. Bohl, Dimitrios Kanelis and Pierre Siklos

No 9622, CQE Working Papers from Center for Quantitative Economics (CQE), University of Muenster

Abstract: In this paper, we analyze the relevance of central bank mandates on the content and tone of communication via speeches. Comparing this communication channel for mandate-related objectives between the Federal Reserve and the European Central Bank reveals similarities before the Great Financial Crisis, while notable differences emerge afterward. Furthermore, we propose a study design to examine how hawkish the tone of speeches becomes in light of current versus expected macroeconomic developments. We find that, since the GFC, expectations of unemployment drive the tone of FED speeches while inflation expectations influence the tone of ECB speeches.

Keywords: ECB; Expectations; FED; Inflation; Central Bank Mandates; Speeches; Structural Topic Model; Unemployment (search for similar items in EconPapers)
JEL-codes: E50 E52 E58 (search for similar items in EconPapers)
Pages: 67 pages
Date: 2022-02
New Economics Papers: this item is included in nep-ban, nep-cba, nep-eec, nep-mac and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:cqe:wpaper:9622

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