Central banks around the globe face new challenges in the form of adverse supply shocks, rising inflation rates, and the consequential need to tighten monetary policy without causing dislocations in financial markets and the real economy. In addressing these, the accompanying communication of central banks is often seen to be as important as the actual policy actions. This column shows that market responses can be directly linked to topic-specific news revealed in the communication of central banks.
Nothing contributes so much to the prosperity and happiness of a country as high profits