Textual Complexity of Central Bank Monetary Policy Report and Financial Markets Stability:Based on the Analysis of Phrase Syntactic Structure Complexity
This paper uses natural language processing methods to analyze monetary policy report of PBOC,calculates the text complexity of the reports and explores the relationship between the text indicators and financial markets stability.We use data from the third quarter of 2005 to the fourth quarter of 2021.The empirical findings show that the complexity of the central bank's monetary policy report positively affects stock price and government bond yield,but negatively impacts overall bond market.Nevertheless,the effect on foreign ex-change markets was relatively limited.Further analysis shows that the text complexity of central bank monetary policy reports mainly affects financial markets through the forward-looking guidance part.
Text ComplexityCentral Bank CommunicationsFinancial Market Stability
万方数据
