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Writing Clearly: The ECB 's Monetary Policy Communication

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  • Aleš Bulíř
  • Martin Čihák
  • Kateřina Šmídková

Abstract

The article presents a novel methodology for measuring the clarity of central bank communication using content analysis, illustrating the methodology with the case of the European Central Bank (ECB). The analysis identifies the ECB’s written communication as clear in about 85-95% of instances, which is comparable with, or better than, similar results available for other central banks. We also find that the additional information on risk to inflation and especially projection risk assessment contained in the ECB’s Monthly Bulletins helps to improve communication clarity compared to ECB’s press releases. In contrast, the bulletin’s communication on monetary developments has a negative, albeit small, impact on clarity.
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Suggested Citation

  • Aleš Bulíř & Martin Čihák & Kateřina Šmídková, 2013. "Writing Clearly: The ECB 's Monetary Policy Communication," German Economic Review, Verein für Socialpolitik, vol. 14(1), pages 50-72, February.
    • Handle: RePEc:bla:germec:v:14:y:2013:i:1:p:50-72
    DOI: 10.1111/j.1468-0475.2011.00562.x
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    Cited by:

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    2. Allard, Julien & Catenaro, Marco & Vidal, Jean-Pierre & Wolswijk, Guido, 2013. "Central bank communication on fiscal policy," European Journal of Political Economy, Elsevier, vol. 30(C), pages 1-14.
    3. Ales Bulír & Martin Cihák & David-Jan Jansen, 2011. "Clarity of Central Bank Communication About Inflation," DNB Working Papers 333, Netherlands Central Bank, Research Department.

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