Clarity of Central Bank Communication About Inflation

29 Pages Posted: 5 Jan 2012

See all articles by Aleš Bulíř

Aleš Bulíř

International Monetary Fund (IMF)

Martin Čihák

International Monetary Fund (IMF)

David-Jan Jansen

De Nederlandsche Bank

Multiple version iconThere are 3 versions of this paper

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

Bulir, Ales and Cihak, Martin and Jansen, David-Jan, Clarity of Central Bank Communication About Inflation (December 27, 2011). De Nederlandsche Bank Working Paper No. 333. Available at SSRN: https://ssrn.com/abstract=1979313 or http://dx.doi.org/10.2139/ssrn.1979313

Ales Bulir (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Martin Cihak

International Monetary Fund (IMF) ( email )

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

David-Jan Jansen

De Nederlandsche Bank ( email )

P.O. Box 98
1000 AB Amsterdam
Netherlands

HOME PAGE: http://sites.google.com/site/djansenresearch

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