Spread the Word: International spillovers from central bank communication

B-Tier
Journal: Journal of International Money and Finance
Year: 2020
Volume: 103
Issue: C

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

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

Abstract

We construct a novel text dataset to measure the sentiment component of communications for 23 central banks over the 2002–2017 period. Our analysis yields three results. First, comovement in sentiment across central banks is not reducible to trade or financial flow exposures. Second, sentiment shocks generate cross-country spillovers in sentiment, policy rates, and macroeconomic variables; and the Fed appears to be a uniquely influential generator of such spillovers, even among prominent central banks. And third, geographic distance is a robust and economically significant determinant of comovement in central bank sentiment, while shared language and colonial ties have weaker predictive power.

Technical Details

RePEc Handle
repec:eee:jimfin:v:103:y:2020:i:c:s0261560619302967
Journal Field
International
Author Count
4
Added to Database
2026-01-24