We aim to shed more light on the important issue of central bank communication in general, and the ECB’s monetary policy strategy in particular. In particular, we apply probabilistic topic models to ECB communication. To do so, we first use automated algorithms on ECB Governing Council decisions, press conferences, speeches and interviews from 1998 to the present. We will then apply the model to identify the policy priorities expressed in this communication. Specifically, we seek to identify the relative importance of the economic and the monetary pillar of the ECB monetary policy strategy, and aim to pinpoint potential shifts within the monetary pillar away from money growth towards a financial stability interpretation.
Project status |
in progress |
Project time |
since 01.10.2017 |
Keywords |
Communication; Monetary policy; European Central Bank; Probabilistic Topic Models |