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Narratives in ECB Press Conferences: A Textual Analysis

Justyna Klejdysz
CESifo, Munich, 2023

EconPol Forum 24 (1), 42-45
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  • Topic analysis of the European Central Bank (ECB) press conferences reveals meaningful communication patterns
  • Similar press conferences are clustered in time
  • The revisions to the ECB narrative accompany the changes in policy direction
  • Market volatility increases when the ECB substantially updates its wording in the monetary analysis section as compared to keeping it rather static relative to the previous period
  • Shifts in ECB communication introduce incremental volatility above and beyond that created by a change in policy stance

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