Clarity of Central Bank Communication About Inflation

Author/Editor:

Ales Bulir ; David-Jan Jansen ; Martin Cihak

Publication Date:

January 1, 2012

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 12/9

Subject:

Frequency:

Quarterly

English

Publication Date:

January 1, 2012

ISBN/ISSN:

9781463931148/1018-5941

Stock No:

WPIEA2012009

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

24

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