Clarity of Central Bank Communication About Inflation
IMF Working Papers, January 1, 2012
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- Clarity of Central Bank Communication About Inflation
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Bibliographic details
- Authors: Aleš Bulíř, David-Jan Jansen, Martin Cihak
- Published: January 1, 2012
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781463931148.001
Overview
- This paper examines whether the clarity of central bank communication about inflation has changed with the economic environment.
- Time coverage: 1997 to 2010.
- Sample: communication on the inflation outlook by seven central banks.
- Principal conclusion: "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."
Methodology
- Tools used: readability statistics and content analysis.
- Focus: clarity of communication on the inflation outlook.
Key findings
- No strong indications that central banks became less clear under higher uncertainty or a less favorable inflation outlook.
- The global financial crisis had a negative impact on the clarity of central bank communication.
Subject areas and keywords
- Subject: Banking; Communications in revenue administration; Financial crises; Global financial crisis of 2008-2009; Inflation; Inflation targeting; Monetary policy; Prices; Revenue administration.
- Keywords: central bank communication, clarity, communication, communication clarity, Communications in revenue administration, contemporaneous inflation gap, Global, Global financial crisis of 2008-2009, inflation, inflation expectation, inflation factor, inflation outlook, inflation report, Inflation targeting, monetary policy, transparency, WP.