Four Facts about International Central Bank Communication

Christoph Bertsch, Isaiah Hull, Robin L. Lumsdaine () and Xin Zhang ()
Additional contact information
Robin L. Lumsdaine: Kogod School of Business, American University; Erasmus University Rotterdam; National Bureau of Economic Research (NBER); Tinbergen Institute; Center for Financial Stability
Xin Zhang: Research Department, Central Bank of Sweden, Postal: Sveriges Riksbank, SE-103 37 Stockholm, Sweden

No 432, Working Paper Series from Sveriges Riksbank (Central Bank of Sweden)

Abstract: This paper introduces a novel database of text features extracted from the speeches of 53 central banks from 1996 to 2023 using state-of-the-art NLP methods. We establish four facts: (1) central banks with floating and pegged exchange rates communicate differently, and these differences are particularly pronounced in discussions about exchange rates and the dollar, (2) communication spillovers from the Federal Reserve are prominent in exchange rate and dollar-related topics for dollar peggers and in hawkish sentiment for others, (3) central banks engage in FX intervention guidance, and (4) more transparent institutions are less responsive to political pressure in their communication.

Keywords: Exchange Rates; Natural Language Processing (NLP); International Spillovers; Monetary Policy (search for similar items in EconPapers)
JEL-codes: C55 E42 E50 F31 F42 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2024-03-01
New Economics Papers: this item is included in nep-ban, nep-big, nep-cba, nep-his, nep-ifn, nep-mon and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.riksbank.se/globalassets/media/rapport ... nk-communication.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:rbnkwp:0432

Access Statistics for this paper

More papers in Working Paper Series from Sveriges Riksbank (Central Bank of Sweden) Sveriges Riksbank, SE-103 37 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Lena Löfgren ().