Clarity of Central Bank Communication About Inflation
29 Pages Posted: 5 Jan 2012
There are 3 versions of this paper
Clarity of Central Bank Communication About Inflation
Clarity of Central Bank Communication About Inflation
Clarity of Central Bank Communication About Inflation
Date Written: December 27, 2011
Abstract
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.
Keywords: monetary policy, communication, inflation, clarity, transparency
JEL Classification: E52, E58
Suggested Citation: Suggested Citation
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