A text mining analysis of Central Bank communication: An application to emerging market Central Banks

In this dissertation, I investigate the communication texts of monetary policy committee meetings of emerging market economies (EMEs) by applying the text mining method. The objective is to quantify the recent changes in these communication texts using readability, clarity and sentiment indicators. The international economic institutions and financial markets hold the view that the central banks of Brazil, Hungary, Indonesia, Malaysia, Poland, Russia, South Africa, South Korea and Turkey have initiated significant changes in their monetary policy communication strategies and procedures following the tectonic shifts introduced by major central banks such as forward policy guidance. I tried to answer the following research questions: "Is there a common language used among our sample EM central banks?". "How has the common language usage changed in the last ten years?". "How much has the readability level of the meeting statement texts changed?". How has communication affected the effectiveness of EM monetary policies? Our empirical results reveal the effectiveness of EM CB communication strategies and policies-in place in recent years.