Aakriti Mathur, Rajeswari Sengupta, 03 September 2020

Since the 2008 Global Crisis, significant attention is paid to central bank communication, especially for countries with an inflation targeting mandate. This column analyses the monetary policy statements of the Reserve Bank of India, which formally adopted inflation targeting in 2016. It finds that the length of statements has dramatically declined, the linguistic complexity has improved, and the content is more focused on inflation topics since the regime change. In addition, there is a strong relationship between the length of statements and stock market volatility, highlighting the real impacts of effective communication.

Yosuke Takeda, Masayuki Keida, 18 June 2017

Communication strategies have become a policy instrument used by central banks to control expectations. This column uses a natural language processing method to explore the Bank of Japan’s communication strategy from July 2012 to November 2016, a period during which both Masaaki Shirakawa and Haruhiko Kuroda held office. The analysis suggests that since 2016, when the Bank introduced a negative interest rate policy, Kuroda's communication strategy has changed implicitly.

CEPR Policy Research