FMPAF: How Do Fed Chairs Affect the Financial Market? A Fine-grained Monetary Policy Analysis Framework on Their Language

arXiv:2403.06115v1 Announce Type: new
Abstract: The effectiveness of central bank communication is a crucial aspect of monetary policy transmission. While recent research has examined the influence of policy communication by the chairs of the Federal Reserve on various financial variables, much of the literature relies on rule-based or dictionary-based methods in parsing the language of the chairs, leaving nuanced information about policy stance contained in nonverbal emotion out of the analysis. In the current study, we propose the Fine-Grained Monetary …

abstract analysis arxiv bank communication cs.ai cs.ce cs.cl fed federal reserve financial financial market fine-grained framework influence language market monetary policy policy research type variables