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'Liked', 'Shared', 'Commented': Central Bank Communication on Facebook and Twitter

Author

Listed:
  • Yuriy Gorodnichenko

    (University of California, Berkeley)

  • Tho Pham

    (University of Reading)

  • Oleksandr Talavera

    (University of Birmingham)

Abstract

This study is a comprehensive analysis of the Federal Reserve System (FED) communication on social media and its effectiveness. Our examination shows that although the FED uses both Twitter and Facebook for public outreach, communication via Twitter is more popular and gains greater public engagement. There are heterogeneous effects across different topics of the FED's social media posts, post types, as well as across Twitter user groups. The general public is most active in engaging with the FED accounts, followed by media, investors, academics, and government accounts. Further investigation suggests inconclusive evidence of stock market reactions to the FED communication on social media. However, market participants do update their inflation expectations based on information contained in the FED's social media posts.

Suggested Citation

  • Yuriy Gorodnichenko & Tho Pham & Oleksandr Talavera, 2021. "'Liked', 'Shared', 'Commented': Central Bank Communication on Facebook and Twitter," Discussion Papers 21-05, Department of Economics, University of Birmingham.
  • Handle: RePEc:bir:birmec:21-05
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    File URL: https://repec.cal.bham.ac.uk/pdf/21-05.pdf
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    References listed on IDEAS

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    Cited by:

    1. Michael J. Lamla & Dmitri V. Vinogradov, 2021. "Is the Word of a Gentleman as Good as His Tweet? Policy communications of the Bank of England," Working Paper Series in Economics 403, University of Lüneburg, Institute of Economics.

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    More about this item

    Keywords

    central bank communication; social media; public engagement; financial market.;
    All these keywords.

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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