EconPapers    
Economics at your fingertips  
 

CENTRAL BANK COMMUNICATION IN GHANA: INSIGHTS FROM A TEXT MINING ANALYSIS

Babatunde Omotosho

Noble International Journal of Economics and Financial Research, 2020, vol. 5, issue 1, 01-13

Abstract: Effective central bank communication is useful for anchoring market expectations and enhancing macroeconomic stability. In this paper, the communication strategy of the Bank of Ghana (BOG) is analysed using BOG’s monetary policy committee press releases for the period 2018-2019. Specifically, we apply text mining techniques to investigate the readability, sentiments and hidden topics of the policy documents. Our results provide evidence of increased central bank communication during the sample period, implying improved monetary policy transparency. Also, the computed Coleman and Liau (1975) readability index shows that the word and sentence structures of the press releases have become less complex, indicating increased readability. Furthermore, we find an average monetary policy net sentiment score of 3.9 per cent. This means that the monetary policy committee expressed positive sentiments regarding policy and macroeconomic outlooks during the period. Finally, the estimated topic model reveals that the topic proportion for “monetary policy and inflation†was prominent in the year 2018 while concerns regarding exchange rate were strong in 2019. The paper recommends that in order to enhance monetary policy communication, the Bank of Ghana should continue to improve on the readability of the monetary policy press releases.

Keywords: Central Bank Communication; Text Mining; Monetary Policy (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.napublisher.org/pdf-files/NIJEFR-5(1)-01-13.pdf (application/pdf)
https://www.napublisher.org/?ic=journal&journal=5&month=01-2020&issue=1&volume=5 (text/html)

Related works:
Working Paper: Central Bank Communication in Ghana: Insights from a Text Mining Analysis (2019) Downloads
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:nap:nijefr:2020:p:01-13

Access Statistics for this article

Noble International Journal of Economics and Financial Research is currently edited by Dr. Elif Akben-Selcuk

More articles in Noble International Journal of Economics and Financial Research from Noble Academic Publsiher Flat 290 B N Block Model Town, Lahore, Punjab, Pakistan.
Bibliographic data for series maintained by Managing Editor ( this e-mail address is bad, please contact ).

 
Page updated 2025-03-19
Handle: RePEc:nap:nijefr:2020:p:01-13