Reading between the lines - Using text analysis to estimate the loss function of the ECB

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dc.contributor Bank of Finland Paloviita, Maritta Haavio, Markus Jalasjoki, Pirkka Kilponen, Juha Vänni, Ilona 2020-07-06T04:43:46Z 2020-07-06T04:43:46Z 2020
dc.identifier.isbn 978-952-323-337-9
dc.identifier.issn 1456-6184
dc.description.abstract We measure the tone (sentiment) of the ECB’s Governing Council regarding economic outlook at the time of each monetary policy meeting and use this information together with the Eurosystem/ECB staff macroeconomic projections to directly estimate the Governing Council’s loss function. Our results support earlier, more indirect findings, based on reaction function estimations, that the ECB has been either more averse to inflation above 2% ceiling or that the de facto inflation aim has been considerably below 2%. Our results suggest further that an inflation aim of 2% combined with asymmetry is a plausible specification of the ECB’s preferences.
dc.format.extent 41
dc.language.iso ENG
dc.subject EKP
dc.subject inflaatiotavoite
dc.subject eurojärjestelmä
dc.subject.other central bank communication
dc.subject.other ECB
dc.subject.other monetary policy
dc.subject.other textual analysis
dc.subject.other inflation target
dc.subject.other real time projections
dc.subject.other loss function
dc.title Reading between the lines - Using text analysis to estimate the loss function of the ECB
dc.type Paper
dc.identifier.urn URN:NBN:fi:bof-202007032225
dc.subject.jel E31
dc.subject.jel E52
dc.subject.jel E58 Bank of Finland Research Discussion Papers
dc.series.year 2020
dc.series.number 12/2020
dc.series.sortingnumber 0012 6.7.2020
dc.subject.yso keskuspankit
dc.subject.yso viestintä
dc.subject.yso rahapolitiikka
dc.subject.yso inflaatio
dc.subject.yso tavoitteet
dc.subject.yso informaatio
dc.subject.yso tekstianalyysi
dc.description.publication Also in VoxEU 28.7.2020
bof-internal.includedInCRIS 1
dc.type.okm D4

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