Writing Clearly: ECB's Monetary Policy Communication

36 Pages Posted: 18 Dec 2008

See all articles by Aleš Bulíř

Aleš Bulíř

International Monetary Fund (IMF)

Martin Čihák

International Monetary Fund (IMF)

Katerina Smidkova

Czech National Bank (Deceased); Charles University - Economics Department (Deceased)

Date Written: October 2008

Abstract

The paper presents a methodology for measuring the clarity of central bank communication, illustrating it with the case of the European Central Bank (ECB) in 1999-2007. The analysis identifies the ECB's written communication as clear about 95 percent of instances, which is comparable to, or even better than, other central banks for which a similar analysis is available. We also find that the additional information contained in the ECB's Monthly Bulletins helps to improve communication clarity compared to ECB's press releases. In particular, the Bulletins contain useful clarifying information on individual inflation factors and the overall forecast risk; in contrast, the bulletin's communication on monetary shocks has a negative, albeit small, impact on clarity.

Keywords: European Central Bank, Monetary policy, Central bank policy, External shocks

Suggested Citation

Bulir, Ales and Cihak, Martin and Smidkova, Katerina, Writing Clearly: ECB's Monetary Policy Communication (October 2008). IMF Working Papers, Vol. , pp. 1-34, 2008. Available at SSRN: https://ssrn.com/abstract=1316720

Ales Bulir

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Martin Cihak (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street N.W.
Washington, DC 20431
United States

Katerina Smidkova

Czech National Bank (Deceased)

Charles University - Economics Department (Deceased)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
61
Abstract Views
688
rank
371,233
PlumX Metrics