Central Bank Communication with Non-Experts - A Road to Nowhere?

Michael Ehrmann and Alena Wabitsch

No 16525, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Central banks have intensified their communication with non-experts – an endeavour which some have argued is bound to fail. This paper studies English and German Twitter traffic about the ECB to understand whether its communication is received by non-experts and how it affects their views. It shows that Twitter traffic is responsive to ECB communication, also for non-experts. For several ECB communication events, Twitter constitutes primarily a channel to relay information: tweets become more factual and the views expressed more moderate and homogeneous. Other communication events, such as former President Draghi’s “Whatever it takes†statement, trigger persistent traffic and a divergence in views. Also, ECB-related tweets are more likely to get retweeted or liked if they express stronger or more subjective views. Thus, Twitter also serves as a platform for controversial discussions. The findings suggest that central banks manage to reach non-experts, i.e. their communication is not a road to nowhere.

Keywords: Monetary policy; Central bank communication; Social media; Non-experts (search for similar items in EconPapers)
JEL-codes: E52 E58 (search for similar items in EconPapers)
Date: 2021-09
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Related works:
Journal Article: Central bank communication with non-experts – A road to nowhere? (2022)
Working Paper: Central bank communication with non-experts: a road to nowhere? (2021)
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