Clarity of Central Bank Communication About Inflation

24 Pages Posted: 2 Feb 2012

See all articles by Martin Čihák

Martin Čihák

International Monetary Fund (IMF)

David-Jan Jansen

De Nederlandsche Bank

Aleš Bulíř

International Monetary Fund (IMF)

Multiple version iconThere are 3 versions of this paper

Date Written: Janurary 2012

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: Central banks, Inflation, Monetary policy, Public information notices, Transparency

Suggested Citation

Cihak, Martin and Jansen, David-Jan and Bulir, Ales, Clarity of Central Bank Communication About Inflation (Janurary 2012). IMF Working Paper No. 12/9. Available at SSRN: https://ssrn.com/abstract=1997722

Martin Cihak (Contact Author)

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

Ales Bulir

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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