Clarity of Central Bank Communication About Inflation

Clarity of Central Bank Communication About Inflation PDF Author: Mr.Ales Bulir
Publisher: International Monetary Fund
ISBN: 146393114X
Category : Business & Economics
Languages : en
Pages : 24

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Book Description
This paper examines whether the clarity of central bank communication about inflation has changed with the economic environment. We use readability statistics and content analysis to study the clarity of communication on the inflation outlook by seven central banks between 1997 and 2010. Overall, we find no strong indications that central banks were less clear in explaining their policies when faced with higher uncertainty or a less favorable inflation outlook. The global financial crisis, however, did have a negative impact on clarity of central bank communication.

Clarity of Central Bank Communication About Inflation

Clarity of Central Bank Communication About Inflation PDF Author: Mr.Ales Bulir
Publisher: International Monetary Fund
ISBN: 146393114X
Category : Business & Economics
Languages : en
Pages : 24

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Book Description
This paper examines whether the clarity of central bank communication about inflation has changed with the economic environment. We use readability statistics and content analysis to study the clarity of communication on the inflation outlook by seven central banks between 1997 and 2010. Overall, we find no strong indications that central banks were less clear in explaining their policies when faced with higher uncertainty or a less favorable inflation outlook. The global financial crisis, however, did have a negative impact on clarity of central bank communication.

Clarity of Central Bank Communication About Inflation

Clarity of Central Bank Communication About Inflation PDF Author: Aleš Bulíř
Publisher:
ISBN:
Category :
Languages : en
Pages : 26

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Book Description
This paper examines whether the clarity of central bank communication about inflation has changed with the economic environment. We use readability statistics and content analysis to study the clarity of communication on the inflation outlook by seven central banks between 1997 and 2010. Overall, we find no strong indications that central banks were less clear in explaining their policies when faced with higher uncertainty or a less favorable inflation outlook. The global financial crisis, however, did have a negative impact on clarity of central bank communication.

Writing Clearly

Writing Clearly PDF Author: Mr.Martin Cihak
Publisher: International Monetary Fund
ISBN: 1451871104
Category : Business & Economics
Languages : en
Pages : 36

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Book Description
The paper presents a methodology for measuring the clarity of central bank communication, illustrating it with the case of the European Central Bank (ECB) in 1999-2007. The analysis identifies the ECB's written communication as clear about 95 percent of instances, which is comparable to, or even better than, other central banks for which a similar analysis is available. We also find that the additional information contained in the ECB's Monthly Bulletins helps to improve communication clarity compared to ECB's press releases. In particular, the Bulletins contain useful clarifying information on individual inflation factors and the overall forecast risk; in contrast, the bulletin's communication on monetary shocks has a negative, albeit small, impact on clarity.

Does the Clarity of Inflation Reports Affect Volatility in Financial Markets?

Does the Clarity of Inflation Reports Affect Volatility in Financial Markets? PDF Author: Mr.Ales Bulir
Publisher: International Monetary Fund
ISBN: 1498392911
Category : Business & Economics
Languages : en
Pages : 29

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Book Description
We study whether clarity of central bank inflation reports affects return volatility in financial markets. We measure clarity of reports by the Czech National Bank, the European Central Bank, the Bank of England, and Sveriges Riksbank using the Flesch-Kincaid grade level, a standard readability measure. We find some evidence, mainly for the euro area, of a negative relationship between clarity and market volatility prior to and during the early stage of the global financial crisis. As the crisis unfolded, there is no longer robust evidence of a negative connection. We conclude that reducing noise using clear reports is possible but not without challenges, especially in times of crisis.

Writing Clearly

Writing Clearly PDF Author: Aleš Buliř
Publisher:
ISBN:
Category : Banks and banking, Central
Languages : en
Pages : 0

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Book Description
The paper presents a methodology for measuring the clarity of central bank communication, illustrating it with the case of the European Central Bank (ECB) in 1999-2007. The analysis identifies the ECB's written communication as clear about 95 percent of instances, which is comparable to, or even better than, other central banks for which a similar analysis is available. We also find that the additional information contained in the ECB's Monthly Bulletins helps to improve communication clarity compared to ECB's press releases. In particular, the Bulletins contain useful clarifying information on individual inflation factors and the overall forecast risk; in contrast, the bulletin's communication on monetary shocks has a negative, albeit small, impact on clarity.

Communication of Central Bank Thinking and Inflation Dynamics

Communication of Central Bank Thinking and Inflation Dynamics PDF Author: Man-Keung Tang
Publisher: International Monetary Fund
ISBN: 1463902190
Category : Business & Economics
Languages : en
Pages : 34

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Book Description
This paper studies the role of central bank communication of its economic assessment in shaping inflation dynamics. Imperfect information about the central bank's assessment - or the basis for monetary policy decisions - could complicate the private sector's learning about its policy response function. We show how clear central bank communication, which facilitates agents' understanding of policy reasoning, could bring about less volatile inflation and interest rate dynamics, and afford the authorities with greater policy flexibility. We then estimate a simple monetary model to fit the Mexican economy, and use the suggested paramters to illustrate the model's quantitative implications in scenarios where the timing, nature and persistence of shocks are uncertain.

Talking about Monetary Policy

Talking about Monetary Policy PDF Author: Alan S. Blinder
Publisher:
ISBN:
Category : Banks and banking, Central
Languages : en
Pages : 48

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Book Description


Inflation Expectations

Inflation Expectations PDF Author: Peter J. N. Sinclair
Publisher: Routledge
ISBN: 1135179778
Category : Business & Economics
Languages : en
Pages : 402

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Book Description
Inflation is regarded by the many as a menace that damages business and can only make life worse for households. Keeping it low depends critically on ensuring that firms and workers expect it to be low. So expectations of inflation are a key influence on national economic welfare. This collection pulls together a galaxy of world experts (including Roy Batchelor, Richard Curtin and Staffan Linden) on inflation expectations to debate different aspects of the issues involved. The main focus of the volume is on likely inflation developments. A number of factors have led practitioners and academic observers of monetary policy to place increasing emphasis recently on inflation expectations. One is the spread of inflation targeting, invented in New Zealand over 15 years ago, but now encompassing many important economies including Brazil, Canada, Israel and Great Britain. Even more significantly, the European Central Bank, the Bank of Japan and the United States Federal Bank are the leading members of another group of monetary institutions all considering or implementing moves in the same direction. A second is the large reduction in actual inflation that has been observed in most countries over the past decade or so. These considerations underscore the critical – and largely underrecognized - importance of inflation expectations. They emphasize the importance of the issues, and the great need for a volume that offers a clear, systematic treatment of them. This book, under the steely editorship of Peter Sinclair, should prove very important for policy makers and monetary economists alike.

The Oxford Handbook of the Economics of Central Banking

The Oxford Handbook of the Economics of Central Banking PDF Author: David G. Mayes
Publisher: Oxford Handbooks
ISBN: 0190626194
Category : Business & Economics
Languages : en
Pages : 809

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Book Description
"The Handbook reflects the state of the art in the theory and practice of central banking. It covers all the essential areas that have come under scrutiny since the global financial crisis of 2007-9"--

The Role of Central Bank Communication in Inflation-targeting Eastern European Emerging Economies

The Role of Central Bank Communication in Inflation-targeting Eastern European Emerging Economies PDF Author: Valerio ASTUTI
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description