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Crafting Consensus – Why Central Bankers Change Their Speech and How Speech Changes the Economy - Oxford Scholarship Online
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Crafting Consensus: Why Central Bankers Change Their Speech and How Speech Changes the Economy

Nicole Baerg

Abstract

In the early 2000s, the US monetary policy committee, as well as other central banks around the world, began using “forward guidance,” or changes in their statement language, to signal policy changes. Underlying this shift toward clearer communication was the idea that more comprehensible monetary policy would lead to better economic performance and lower inflation. The first three chapters of this book argue that, rather than being a lofty goal set by altruistically motivated policy makers, transparency depends on the configuration of committee members’ preferences. Monetary policy committees ... More

Keywords: central bank, communication, FOMC, monetary policy, transparency, inflation, stabilization, financial crises, machine learning, text analysis

Bibliographic Information

Print publication date: 2020 Print ISBN-13: 9780190499488
Published to Oxford Scholarship Online: July 2020 DOI:10.1093/oso/9780190499488.001.0001

Authors

Affiliations are at time of print publication.

Nicole Baerg, author
Assistant Professor in Government, University of Essex