Procedural transparency in Latin American central banks under inflation targeting schemes. A text analysis of the minutes of the Boards of Directors

Rodrigo Taborda

Revista ESPE - Ensayos Sobre Política Económica, 2015, vol. 33, issue 76, No 13849, 76-92

Abstract: The disclosure of the minutes of the Boards of Directors of central banks (procedural transparency within the inflation targeting (IT) literature) implies the challenge of sending a clear message. Regardless of whether the document released is a brief, moderate, or highly detailed (verbatim) account of a Board's discussion, its contents often align expectations and define an effective monetary policy to curb inflation. This paper provides a quantitative perspective of procedural transparency by performing a text analysis of the minutes of Board meetings in the central banks of Brazil, Chile, Colombia, Mexico, and Peru. The study examined the lengths of the minutes, their frequent vocabulary (including its association with a predefined central-bank terminology), and their readability (through a reading ease index). ****** La divulgación de las actas de las juntas directivas de los bancos centrales (transparencia procedimental dentro de la literatura de inflación objetivo) supone el reto de enviar un mensaje claro. Independientemente de si el documento publicado es un resumen breve, moderado o muy detallado (literal) de una reunión de la junta, los contenidos suelen converger las expectativas y definir una política económica eficaz para contener la inflación. El presente ensayo arroja una perspectiva cuantitativa de la transparencia en los procedimientos por medio de un análisis textual de las actas de las reuniones de las juntas en los bancos centrales de Brasil, Chile, Colombia, México y Perú. El estudio examinó la longitud de las actas, el vocabulario más frecuente (entre el que se incluye la asociación a una terminología predefinida del banco central) y su comprensión (a través de un índice de legibiligad).

Keywords: Central bank minutes; Brazil; Chile; Colombia; Mexico; Peru; Text analysis; Cluster analysis; Readability measures (search for similar items in EconPapers)
JEL-codes: C49 E58 O54 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (4)

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https://doi.org/10.1016/j.espe.2015.01.002

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Journal Article: Procedural transparency in Latin American central banks under inflation targeting schemes. A text analysis of the minutes of the Boards of Directors (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000107:013849

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