Narrative Monetary Policy Surprises and the Media

15Citations
Citations of this article
36Readers
Mendeley users who have this article in their library.

This article is free to access.

Abstract

We propose a simple method to quantify narratives from textual data, and identify “narrative monetary policy surprises” as the difference in narrative focus in central bank communication accompanying interest rate meetings and economic media coverage prior to those meetings. Identifying narrative surprises, using Norwegian data, provides surprise measures that are uncorrelated with conventional monetary policy surprises, and, in contrast to such surprises, have a significant effect on subsequent media coverage. Narrative monetary policy surprises lead to macroeconomic responses similar to what recent monetary policy literature associates with the information component of monetary policy communication, highlighting media's role as information intermediaries.

Cite

CITATION STYLE

APA

Ter Ellen, S., Larsen, V. H., & Thorsrud, L. A. (2022). Narrative Monetary Policy Surprises and the Media. Journal of Money, Credit and Banking, 54(5), 1525–1549. https://doi.org/10.1111/jmcb.12868

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free