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Central bank communication with non-experts – A road to nowhere?

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  • Ehrmann, Michael
  • Wabitsch, Alena

Abstract

Central banks have intensified their communication with non-experts – an endeavour which some argue will fail. This paper studies English and German tweets about the ECB to show that its communication is received by non-experts, i.e. is not a road to nowhere. Following ECB communications, tweets often primarily relay information, become more factual and the views expressed more moderate and homogeneous. Some communications, such as Mario Draghi's “Whatever it takes”, trigger a divergence in views. Also, tweets with negative, stronger or more subjective views are more likely retweeted, liked or replied to. Thus, Twitter also constitutes a platform for controversial discussions.

Suggested Citation

  • Ehrmann, Michael & Wabitsch, Alena, 2022. "Central bank communication with non-experts – A road to nowhere?," Journal of Monetary Economics, Elsevier, vol. 127(C), pages 69-85.
    • Handle: RePEc:eee:moneco:v:127:y:2022:i:c:p:69-85
    DOI: 10.1016/j.jmoneco.2022.02.003
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    More about this item

    Keywords

    Monetary policy; Central bank communication; Social media; Non-experts;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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