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Article
Measuring Communication Quality of Interest Rate Announcements
The Economists’ Voice (2023)
  • Jonathan Benchimol
  • Itamar Caspi
  • Sophia Kazinnik
Abstract
We use text-mining techniques to measure the accessibility and quality of information within the texts of interest rate announcements published by the Bank of Israel over the past decade. We find that comprehension of interest rate announcements published by the Bank of Israel requires fewer years of education than interest rate announcements published by the Federal Reserve and the European Central Bank. In addition, we show that the sentiment within these announcements is aligned with economic fluctuations. We also find that textual uncertainty is correlated with the volatility of the domestic financial market.
Keywords
  • text mining,
  • central bank communication,
  • monetary policy,
  • financial stability
Disciplines
Publication Date
June 1, 2023
DOI
10.1515/ev-2022-0023
Citation Information
Jonathan Benchimol, Itamar Caspi and Sophia Kazinnik. "Measuring Communication Quality of Interest Rate Announcements" The Economists’ Voice Vol. 20 Iss. 1 (2023) p. 43 - 53
Available at: http://works.bepress.com/jonathanbenchimol/16/