Central banks' endogenous narratives as a driver of financial markets
Valenzuela Lara, Manuel Eduardo
Promotor(s) :
Broché, Patrick
Date of defense : 24-Jun-2020/26-Jun-2020 • Permalink : http://hdl.handle.net/2268.2/8843
Details
Title : | Central banks' endogenous narratives as a driver of financial markets |
Author : | Valenzuela Lara, Manuel Eduardo ![]() |
Date of defense : | 24-Jun-2020/26-Jun-2020 |
Advisor(s) : | Broché, Patrick ![]() |
Committee's member(s) : | Gillain, Cédric ![]() Conlin, Andrew |
Language : | English |
Keywords : | [en] Central banking [en] Monetary policy [en] Narrative Economics [en] Natural Language Processing [en] Financial markets [en] Information theory |
Discipline(s) : | Business & economic sciences > Finance |
Target public : | Researchers Professionals of domain Student General public |
Institution(s) : | Université de Liège, Liège, Belgique |
Degree: | Master en sciences de gestion, à finalité spécialisée en Banking and Asset Management |
Faculty: | Master thesis of the HEC-Ecole de gestion de l'Université de Liège |
Abstract
[en] Central banks around the world, in their efforts to smoothen the economy through the business cycle, have devised for themselves a set of policies which they can turn to, when they need to react to the swings of the economy. Traditionally, those tools have been setting the interest rate, undertaking open market operations, and applying reserve requirements for banks. In the years that have followed the Financial Crisis of 2009, new approaches have been tried by monetary authorities to enhance the effectiveness of their policies. One of these new methods has been the expanded use of communications and media appearances by monetary officials, trying to made their objectives clearer for market participants and the general population.
With a focus on the Federal Reserve System, this thesis examines, through the framework of Narrative Economics and Information Theory and by using newly developed tools such as Natural Language Understanding, the effectiveness that the Fed’s communication strategy has rendered them in their pursuit of price stability and the implications this new approach has carried for financial markets liquidity and investors.
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Description: References, Appendices, & Executive Summary
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