Transparency and Deliberation Within the FOMC: A Computational Linguistics Approach

S-Tier
Journal: Quarterly Journal of Economics
Year: 2018
Volume: 133
Issue: 2
Pages: 801-870

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

How does transparency, a key feature of central bank design, affect monetary policy makers’ deliberations? Theory predicts a positive discipline effect and negative conformity effect. We empirically explore these effects using a natural experiment in the Federal Open Market Committee in 1993 and computational linguistics algorithms. We first find large changes in communication patterns after transparency. We then propose a difference-in-differences approach inspired by the career concerns literature, and find evidence for both effects. Finally, we construct an influence measure that suggests the discipline effect dominates.

Technical Details

RePEc Handle
repec:oup:qjecon:v:133:y:2018:i:2:p:801-870.
Journal Field
General
Author Count
3
Added to Database
2026-01-25