Does it Pay to Watch Central Bankers' Lips? The Information Content of Ecb Wording

@article{Heinemann2005DoesIP,
  title={Does it Pay to Watch Central Bankers' Lips? The Information Content of Ecb Wording},
  author={Friedrich Heinemann and Katrin Ullrich},
  journal={Monetary Economics},
  year={2005}
}
In this analysis, the informational content of central bank rhetoric is assessed based on the experience with the ECB since 1999. Among the ECB's communication channels we focus on the monthly press conferences. Based on a counting of certain signal words we construct a wording indicator reflecting the "hawkishness" of monetary rhetorics. For the construction, we develop an objective algorithm representing a learning process of ECB observers. We then integrate this indicator into a standard… 
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