Central bank communications affect the communications of other central banks, as well as their monetary policies and the macroeconomic indicators of relevant countries. These issues were discussed during an open research seminar that Professor Xin Zhang from Sveriges Riksbank gave on 24 June 2019.
During the seminar, Mr Xin Zhang presented the paper entitled Spread the Word: International Spillover Effects from Central Bank Communications, which he coauthored with Hanna Armelius, Christoph Bertsch, and Isaiah Hull from Sveriges Riksbank.
The researchers analyzed the speeches that representatives of 23 central banks delivered in 2002–2017. The authors found that the impact of communications on the policies of other central banks does not only depend on the density of economic ties between the countries. Messages from the central banks of two countries may contain similar assessments of the economic situation, even if the countries have different dynamics of trade and financial flows. The authors found that the similarity of messages can also be explained by noneconomic factors, such as the geographical proximity, common language, and post-colonial ties of the countries concerned.
The materials of the open research seminar by Xin Zhang are available here.
The NBU launched the open research seminars in July 2015. These seminars provide the representatives of academia, the expert community, international financial institutions, the NBU, and other central banks with the opportunity to share their research findings and discuss them with peers.
The NBU invites researchers to participate in its research seminars on issues related to the NBU’s activities and the operation of the financial system. In order to take part, email your proposals (along with the desired seminar date, presentation materials, an executive summary, and/or draft contributions) to the NBU Research Division of the Monetary Policy and Economic Analysis Department (email: [email protected]).
The materials of previous open research seminars are available here.