European Parliament Library

Does the Clarity of Inflation Reports Affect Volatility in Financial Markets?, Ales Bulir, Martin Cihak, David-Jan Jansen

Label
Does the Clarity of Inflation Reports Affect Volatility in Financial Markets?, Ales Bulir, Martin Cihak, David-Jan Jansen
Language
eng
Abstract
We study whether clarity of central bank inflation reports affects return volatility in financial markets. We measure clarity of reports by the Czech National Bank, the European Central Bank, the Bank of England, and Sveriges Riksbank using the Flesch-Kincaid grade level, a standard readability measure. We find some evidence, mainly for the euro area, of a negative relationship between clarity and market volatility prior to and during the early stage of the global financial crisis. As the crisis unfolded, there is no longer robust evidence of a negative connection. We conclude that reducing noise using clear reports is possible but not without challenges, especially in times of crisis
Bibliography note
Includes bibliographical references
resource.governmentPublication
international or intergovernmental publication
Literary Form
non fiction
Main title
Does the Clarity of Inflation Reports Affect Volatility in Financial Markets?
Nature of contents
dictionaries
Responsibility statement
Ales Bulir, Martin Cihak, David-Jan Jansen
Series statement
IMF Working Papers
Table Of Contents
Cover; Does the Clarity of Inflation Reports Affect Volatility in Financial Markets?; 1 Introduction; 2 Methodology and data sources; 3 Data description; 4 Estimation results; 5 Conclusions; References
Classification