Measuring Central Bank Communication: An Automated Approach with Application to FOMC Statements
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This version of the paper extends the analysis of the draft dated April, 2008 in constructing linguistic measures based on documents from the DJ Factiva news database, in addition to the Internet-based ones. The authors would like to thank Matilde Bombardini, John Cochrane, Erik Hurst, Anil Kashyap, Monika Piazzesi, Jonathan Wright and Egon Zakrajsek for their comments and suggestions, as well as participants at various seminars and Ken Kuttner, our discussant at the meeting of the NBER Monetary Economics Program. Isaac Laughlin provided outstanding research assistance. Hal Varian and the Google University Research Program provided generous access to the Google Search technology. The views and analysis set forth are solely those of the authors and do not indicate concurrence by other members of the Board of Governors of the Federal Reserve System. Francesco Trebbi gratefully acknowledges support by the Initiative on Global Markets and the Mutch Family Faculty Research Fund at the Booth School of Business, the University of Chicago. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.