Research Projects

Central bank communications can affect the global economy in both positive and negative ways, and variation in how monetary policy information is presented by central bankers to the mass public matters. Increasingly, the signals or anchors that market participants and households use to understand the policy-making activities of central banks are the actual words, or natural language, that policy makers use to express their vision of the future economy. Markets are increasingly interconnected, and in such a world, the risk of importing others' communication mistakes, or of over- or under-emphasizing certain language features, is grave in its repercussions on policy making and economic stability. Model: 1.The study would propose a comprehensive empirical measure of signal jamming in the central bank communication. 2. Impact of signal jamming upon the professional forecaster's expectation which would eventually impact the consumers' expectation of inflation. To execute aforementioned objectives, Jamming theory, NLP tools like VADER tone quantification and further econometric (time series) models will be employed. Significance of the study: This empirical work can offer an empirical and comprehensive framework to apex bank for assessing its communications impact on any economy.