SAMNet

Session 4: A forward guidance indicator for the South African Reserve Bank: Implementing a text analysis algorithm

30 November 2020
Publication Type: Workshop Presentation

This research explores the Evolution of Central Bank communication.

There have been four major shifts over the past few decades, one of which is the explicit use of communication as a policy tool known as forward guidance.

A forward guidance indicator (FGI) is based on the idea that communication on the stance of monetary policy can be translated into a sentiment index, which identifies the direction and magnitude in which they intend to influence markets (inflation expectations/interest rates). With this technique, we can evaluate how consistent and effective the central bank has communicated its monetary policy.

 

Series title: A forward guidance indicator for the South African Reserve Bank: Implementing a text analysis algorithm
25 November 2020
A forward guidance indicator for the South African Reserv...
A forward guidance indicator for the South African Reserve Bank: Implementing a text analysis algorithm
A forward guidance indicator for the South African Reserve Bank: Implementing a text analysis algorithm
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