Central bank communication with non-experts -- A road to nowhere?

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Date: Apr. 2022
Publisher: Elsevier B.V.
Document Type: Report; Brief article
Length: 330 words

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Abstract :

Keywords Monetary policy; Central bank communication; Social media; Non-experts Highlights * Twitter traffic by experts and non-experts is responsive to ECB communications * Mostly, tweets relay information, becoming more factual, moderate and homogeneous * Some communications trigger controversial discussions with a divergence in views * Negative, strong or subjective tweets are more often retweeted, liked or replied to Abstract Central banks have intensified their communication with non-experts -- an endeavour which some argue will fail. This paper studies English and German tweets about the ECB to show that its communication is received by non-experts, i.e. is not a road to nowhere. Following ECB communications, tweets often primarily relay information, become more factual and the views expressed more moderate and homogeneous. Some communications, such as Mario Draghi's "Whatever it takes", trigger a divergence in views. Also, tweets with negative, stronger or more subjective views are more likely retweeted, liked or replied to. Thus, Twitter also constitutes a platform for controversial discussions. Author Affiliation: European Central Bank, Sonnemannstraße 20, 60314 Frankfurt am Main, Germany. Wabitsch: University of Oxford * Corresponding author at: European Central Bank and CEPR Article History: Received 3 August 2021; Revised 2 February 2022; Accepted 2 February 2022 (footnote) This paper presents the authors' personal opinions and does not necessarily reflect the views of the ECB or the Eurosystem. We would like to thank Philipp Gnan, Oleksiy Kryvtsov, Kilian Rieder, Peter Tillmann and anonymous referees for this journal and the ECB Working Paper Series as well as participants at an ECB seminar, the workshop "Central bank communication as a public good" and the Bank of Finland/CEPR conference "Monetary Policy Tools and their Impact on the Macroeconomy" for helpful comments. This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors. Declaration of interest: Ehrmann is employed by the European Central Bank. Wabitsch has been employed by the European Central Bank when this project was started. Byline: Michael Ehrmann [michael.ehrmann@ecb.europa.eu] (*), Alena Wabitsch

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Source Citation   

Gale Document Number: GALE|A700885617