Chorus in the cacophony: Dissent and policy communication of India's Monetary Policy Committee
Rounak Sil (),
Unninarayanan Kurup (),
Ashima Goyal and
Apoorva Singh and Rajendra Paramanik
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Rounak Sil: KPMG Global Services, India
Apoorva Singh and Rajendra Paramanik: Indian Institute of Technology, Patna
Indira Gandhi Institute of Development Research, Mumbai Working Papers from Indira Gandhi Institute of Development Research, Mumbai, India
Using minutes of consecutive Monetary Policy Committee (MPC) meetings of the Indian central bank, we have constructed two novel measures of implicit dissent at the individual level as well as across groups. We have used VADER sentiment analysis to arrive at the proposed measures and investigated their influence on anchoring Indian growth and inflation forecasts. Our empirical findings show discordance amongst members increases forecast accuracy. This implies promoting an environment that supports nuanced opinions could improve policy outcomes.
Keywords: Monetary policy; Dissent; NLP; Supply shock; Linear Regression (search for similar items in EconPapers)
JEL-codes: C22 E52 E58 (search for similar items in EconPapers)
Pages: 16 pages
New Economics Papers: this item is included in nep-ban, nep-big, nep-cba and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:ind:igiwpp:2023-03
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