Analysis of CBDC narrative by central banks using large language models

Andres Alonso and José Manuel Carbó

Finance Research Letters, 2023, vol. 58, issue PC

Abstract: One topic that is gaining importance in central bank communication is central bank digital currency (CBDC). To better understand central banks’ stance towards CBDCs, we used different natural language processing techniques on a set of central bank speeches. We found that the sentiment calculated by Large Language Models, and in particular by ChatGPT, is the one that most resembles the sentiment identified by human experts in those same speeches. Our study suggests that LLMs are an effective tool for improving sentiment measurements on specific policy texts, although they are not infallible and may be subject to new risks.

Keywords: ChatGPT; BERT; CBDC; Digital money (search for similar items in EconPapers)
JEL-codes: C88 E58 G15 G41 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pc:s1544612323010152

DOI: 10.1016/j.frl.2023.104643

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