Skip to main content
Top

2020 | OriginalPaper | Chapter

2. ECB and FED Governors’ Speeches: A Topic Modeling Analysis (2007–2019)

Authors : Marika Carboni, Vincenzo Farina, Daniele A. Previati

Published in: Banking and Beyond

Publisher: Springer International Publishing

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

In the last years of the twentieth century central banks started strengthening their communication strategy, making it easier to analyze the evolution of central banks’ functions and role over time and space. In this chapter we employ a topic modeling approach to investigate the differences in the topics contained in European Central Bank (ECB) and Federal Reserve (FED) Governors’ speeches over the time period 2007–2019. We find that both ECB and FED speeches are strongly related to monetary policy, even if the largest number of FED Governors’ speeches is related to the promotion of financial stability, especially with respect to the time period 2008–2010. Additionally, in the United States, the topic of consumer protection is also detected.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Footnotes
1
The importance given to the consumer protection issue in the United States is also highlighted by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the legislation signed into law by President Barack Obama in 2010 in response to the financial crisis.
 
2
See the following webpage: https://​www.​federalreserve.​gov/​faqs/​money_​12848.​htm (accessed May 2019).
 
4
We are still not able to collect all the speeches related to the year 2019.
 
6
See the following webpage: https://​www.​federalreserve.​gov/​aboutthefed/​pf.​htm (accessed May 2019).
 
Literature
go back to reference Berger, H., J. De Haan, and J-E. Sturm. 2006. Does Money Matter in the ECB Strategy? New Evidence Based on ECB Communication. CESifo Working Paper No. 1652. Berger, H., J. De Haan, and J-E. Sturm. 2006. Does Money Matter in the ECB Strategy? New Evidence Based on ECB Communication. CESifo Working Paper No. 1652.
go back to reference Blei, D.M., A.Y. Ng, and M.I. Jordan. 2003. Latent Dirichlet Allocation. Journal of Machine Learning Research 3: 993–1022. Blei, D.M., A.Y. Ng, and M.I. Jordan. 2003. Latent Dirichlet Allocation. Journal of Machine Learning Research 3: 993–1022.
go back to reference Blinder, A.S., M. Ehrmann, M. Fratzscher, J. De Haan, and D.-J. Jansen. 2008. Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence. Journal of Economic Literature 46: 910–945.CrossRef Blinder, A.S., M. Ehrmann, M. Fratzscher, J. De Haan, and D.-J. Jansen. 2008. Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence. Journal of Economic Literature 46: 910–945.CrossRef
go back to reference Blot, C., and P. Hubert 2018. Central Bank Communication During Normal and Crisis Times, Monetary Dialogue, September. Blot, C., and P. Hubert 2018. Central Bank Communication During Normal and Crisis Times, Monetary Dialogue, September.
go back to reference Bordo, M.D., Ø. Eitrheim, M. Flandreau, and J.F. Qvigstad, eds. 2016. Central Bank at a Crossroads. Cambridge University Press. Bordo, M.D., Ø. Eitrheim, M. Flandreau, and J.F. Qvigstad, eds. 2016. Central Bank at a Crossroads. Cambridge University Press.
go back to reference Born, B., M. Ehrmann, and M. Fratzscher. 2011. Macroprudential Policy and Central Bank Communication. BIS Papers Chapters. In Bank for International Settlements, ed. Macroprudential Regulation and Policy, 60, 107–110. Bank for International Settlements. Born, B., M. Ehrmann, and M. Fratzscher. 2011. Macroprudential Policy and Central Bank Communication. BIS Papers Chapters. In Bank for International Settlements, ed. Macroprudential Regulation and Policy, 60, 107–110. Bank for International Settlements.
go back to reference ———. 2013. Central Bank Communication on Financial Stability. The Economic Journal 124: 701–734.CrossRef ———. 2013. Central Bank Communication on Financial Stability. The Economic Journal 124: 701–734.CrossRef
go back to reference DiMaggio, P., M. Nag, and D. Blei. 2013. Exploiting Affinities Between Topic Modeling and the Sociological Perspective on Culture: Application to Newspaper Coverage of U.S. Government Arts Funding. Poetics 41: 570–606.CrossRef DiMaggio, P., M. Nag, and D. Blei. 2013. Exploiting Affinities Between Topic Modeling and the Sociological Perspective on Culture: Application to Newspaper Coverage of U.S. Government Arts Funding. Poetics 41: 570–606.CrossRef
go back to reference Ehrmann, M., and M. Fratzscher. 2009. Explaining Monetary Policy in Press Conferences. International Journal of Central Banking 5: 41–84. Ehrmann, M., and M. Fratzscher. 2009. Explaining Monetary Policy in Press Conferences. International Journal of Central Banking 5: 41–84.
go back to reference Ehrmann, M., and J. Talmi. 2017. Starting from a Blank Page? Semantic Similarity in Central Bank Communication and Market Volatility. Working Paper No. 2023. Ehrmann, M., and J. Talmi. 2017. Starting from a Blank Page? Semantic Similarity in Central Bank Communication and Market Volatility. Working Paper No. 2023.
go back to reference Farina, V., G. Galloppo, and D.A. Previati. 2018. Central Banks’ Communication Strategies: Just Words? In Contemporary Issues in Banking. Regulation, Governance and Performance, ed. M. García-Olalla and J. Clifton. Palgrave Macmillan Studies in Banking and Financial Institutions, Palgrave Macmillan. Farina, V., G. Galloppo, and D.A. Previati. 2018. Central Banks’ Communication Strategies: Just Words? In Contemporary Issues in Banking. Regulation, Governance and Performance, ed. M. García-Olalla and J. Clifton. Palgrave Macmillan Studies in Banking and Financial Institutions, Palgrave Macmillan.
go back to reference ———. 2019. Central Banks’ Commitment to Stakeholders: CSR in the Eurosystem: 2006–2016. In Frontier Topics in Banking. Investigating New Trends and Recent Developments in the Financial Industry, ed. E. Gualandri, V. Venturelli, and A. Sclip. Palgrave Macmillan Studies in Banking and Financial Institution, Palgrave Macmillan. ———. 2019. Central Banks’ Commitment to Stakeholders: CSR in the Eurosystem: 2006–2016. In Frontier Topics in Banking. Investigating New Trends and Recent Developments in the Financial Industry, ed. E. Gualandri, V. Venturelli, and A. Sclip. Palgrave Macmillan Studies in Banking and Financial Institution, Palgrave Macmillan.
go back to reference Ferri, P., M. Lusiani, and L. Pareschi. 2018. Accounting for Accounting History: A Topic Modeling Approach (1996–2015). Accounting History 23: 173–205.CrossRef Ferri, P., M. Lusiani, and L. Pareschi. 2018. Accounting for Accounting History: A Topic Modeling Approach (1996–2015). Accounting History 23: 173–205.CrossRef
go back to reference Gertler, P., and R. Horvath. 2018. Central Bank Communication and Financial Markets: New High-Frequency Evidence. Journal of Financial Stability 36: 336–345. Gertler, P., and R. Horvath. 2018. Central Bank Communication and Financial Markets: New High-Frequency Evidence. Journal of Financial Stability 36: 336–345.
go back to reference Goodhart, C. 1988. The Evolution of Central Banks. 1st ed. MIT Press Books, The MIT Press. Goodhart, C. 1988. The Evolution of Central Banks. 1st ed. MIT Press Books, The MIT Press.
go back to reference ———. 2011. The Changing Role of Central Banks. Financial History Review 18: 135–154.CrossRef ———. 2011. The Changing Role of Central Banks. Financial History Review 18: 135–154.CrossRef
go back to reference Janikowski, L., and A. Rzonca. 2018. Central Bank Communication at Times of Non-standard Monetary Policies, Monetary Dialogue September. Janikowski, L., and A. Rzonca. 2018. Central Bank Communication at Times of Non-standard Monetary Policies, Monetary Dialogue September.
go back to reference Lustenberger T., and E. Rossi. 2017. Does Central Bank Transparency and Communication Affect Financial and Macroeconomic Forecasts? SNB Working Papers, 12/2017. Lustenberger T., and E. Rossi. 2017. Does Central Bank Transparency and Communication Affect Financial and Macroeconomic Forecasts? SNB Working Papers, 12/2017.
go back to reference Masciandaro, D., and D. Romelli. 2018. Central Bankers as Supervisors: Do Crises Matter? European Journal of Political Economy 52: 120–140.CrossRef Masciandaro, D., and D. Romelli. 2018. Central Bankers as Supervisors: Do Crises Matter? European Journal of Political Economy 52: 120–140.CrossRef
go back to reference de Mendonça, H.F., and C.O. de Moraes. 2018. Central Bank Disclosure as a Macroprudential Tool for Financial Stability. Economic Systems 42: 625–636.CrossRef de Mendonça, H.F., and C.O. de Moraes. 2018. Central Bank Disclosure as a Macroprudential Tool for Financial Stability. Economic Systems 42: 625–636.CrossRef
go back to reference Montes, G.C., and R.T.F. Nicolay. 2017. Does Clarity of Central Bank Communication Affect Credibility? Evidences Considering Governor-Specific Effects. Applied Economics 49: 3163–3180.CrossRef Montes, G.C., and R.T.F. Nicolay. 2017. Does Clarity of Central Bank Communication Affect Credibility? Evidences Considering Governor-Specific Effects. Applied Economics 49: 3163–3180.CrossRef
go back to reference Montes, G.C., and A. Scarpari. 2015. Does Central Bank Communication Affect Bank Risk-Taking? Applied Economics Letters 22: 751–758.CrossRef Montes, G.C., and A. Scarpari. 2015. Does Central Bank Communication Affect Bank Risk-Taking? Applied Economics Letters 22: 751–758.CrossRef
go back to reference Nier, E.W. 2009. Financial Stability Frameworks and the Role of Central Banks: Lessons from the Crisis. IMF WP/09/70. Nier, E.W. 2009. Financial Stability Frameworks and the Role of Central Banks: Lessons from the Crisis. IMF WP/09/70.
go back to reference Orphanides, A. 2013. The Federal Reserve and Global Central Banking, Statement Before the Subcommittee on Monetary Policy and Trade of the Committee on Financial Services, United States House of Representatives. Orphanides, A. 2013. The Federal Reserve and Global Central Banking, Statement Before the Subcommittee on Monetary Policy and Trade of the Committee on Financial Services, United States House of Representatives.
go back to reference Rochon, L.-P., and S. Rossi, eds. 2015. The Encyclopedia of Central Banking. Edward Elgar. Rochon, L.-P., and S. Rossi, eds. 2015. The Encyclopedia of Central Banking. Edward Elgar.
go back to reference Vayid, I. 2013. Central Bank Communications Before, During and After the Crisis: From Open-Market Operations to Open-Mouth Policy. Bank of Canada Working Paper 2013. Vayid, I. 2013. Central Bank Communications Before, During and After the Crisis: From Open-Market Operations to Open-Mouth Policy. Bank of Canada Working Paper 2013.
Metadata
Title
ECB and FED Governors’ Speeches: A Topic Modeling Analysis (2007–2019)
Authors
Marika Carboni
Vincenzo Farina
Daniele A. Previati
Copyright Year
2020
DOI
https://doi.org/10.1007/978-3-030-45752-5_2