How should an agent (the sender) observing multi-dimensional data (the state vector) persuade another agent to take the desired action? We show that it is always optimal for the sender to perform a (non-linear) dimension reduction by projecting the state vector onto a lower-dimensional object...

This paper employs text-mining techniques to analyse the communication strategy of the Central Bank of Nigeria (CBN) during the period 2004-2019. Since the policy communique released after each meeting of the CBN’s monetary policy committee (MPC) represents an important tool of central bank...

Australia has historically been Canada's poorer cousin. But a pick-up in productivity growth in the 1990s has raised Australian living standards to Canadian levels. In this article, Dean Parham of the Australian Productivity Commission provides an overview of Australian economic performance and...

This paper studies the informational content of speeches of Fed officials, focusing on financial stability, from 1997 to 2018. We construct indicators that measure the intensity and tone of this topic for both Governors and Fed presidents. When added to a standard forward-looking Taylor rule, a...

While the established literature on central bank communication has traditionally dealt with communication of monetary policy messages to financial markets and the wider public, central bank communication on fiscal policy has so far received little attention. This paper empirically reviews the...

This paper builds a dynamic model of the information flow between partially informed financial institutions and a public agency. The financial institutions decide how to allocate their portfolio between a risk-free technology with a known payoff and a risky technology whose payoff is unknown....

Communication of public information is an integral aspect of policy-making by central banks and governments. We study public communication by a policymaker who cannot fully commit to a disclosure policy. The policymaker chooses not only the transparency of its communication (i.e., the precision...

This paper applies natural language processing to a large corpus of central bank speeches to identify those related to climate change. We analyze these speeches to better understand how central banks communicate about climate change. By all accounts, communication about climate change has...

The People's Bank of China (PBOC) plays a critical role in the country's macroprudential regulation. In recent years, the PBOC has put in place a series of macroprudential tools and developed its macroprudential assessment (MPA) system. During implementation, the ex ante and ex post appraisal of...

This paper studies the informational content of publicly given speeches of FOMC members with a focus on financial stability, from 1997 to 2018. We document that presidents of Federal Reserve Banks spoke more than Board members around and after the financial crisis, and exhibit more variation in...