TY  - UNPD
A1  - Baumgärtner, Martin
A1  - Zahner, Johannes
T1  - Whatever it takes to understand a central banker : embedding their words using neural networks
N2  - Dictionary approaches are at the forefront of current techniques for quantifying central bank communication. In this paper, the author propose a novel language model that is able to capture subtleties of messages such as one of the most famous sentences in central bank communications when ECB President Mario Draghi stated that "within [its] mandate, the ECB is ready to do whatever it takes to preserve the euro".

The authors utilize a text corpus that is unparalleled in size and diversity in the central bank communication literature, as well as introduce a novel approach to text quantication from computational linguistics. This allows them to provide high-quality central bank-specific textual representations and demonstrate their applicability by developing an index that tracks deviations in the Fed's communication towards inflation targeting. Their findings indicate that these deviations in communication significantly impact monetary policy actions, substantially reducing the reaction towards inflation deviation in the US.
T3  - Working paper series / Institute for Monetary and Financial Stability - 194 
KW  - Word Embedding
KW  - Neural Network
KW  - Central Bank Communication
KW  - Natural Language Processing
KW  - Transfer Learning
Y1  - 2023
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/71222
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-712225
UR  - https://www.imfs-frankfurt.de/forschung/imfs-working-papers/details.html?tx_mmpublications_publicationsdetail%5Bcontroller%5D=Publication&tx_mmpublications_publicationsdetail%5Bpublication%5D=459&cHash=fbe9a609b29fc687819559e3250bceea
PB  - Johann Wolfgang Goethe-Univ., Inst. for Monetary and Financial Stability
CY  - Frankfurt am Main
ER  -