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Turning Words into Numbers: Measuring News Media Coverage of Shortages

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  • Lin Chen
  • Stephanie Houle

Abstract

We generate high-frequency and up-to-date indicators to monitor news media coverage of supply (raw, intermediate and final goods) and labour shortages in Canada. We use natural language processing to construct two news-based indicators and time-varying topic narratives to track Canadian media coverage of these shortages from 2000 to 2022. This makes our indicators an insightful alternative monitoring tool for policy. Notably, our indicators track well with monthly price indexes and measures from the Bank of Canada’s Business Outlook Survey, and they are highly correlated with commonly tracked indicators of supply constraint. Moreover, the news-based indicators reflect the attention of the public on pressing issues.

Suggested Citation

  • Lin Chen & Stephanie Houle, 2023. "Turning Words into Numbers: Measuring News Media Coverage of Shortages," Discussion Papers 2023-8, Bank of Canada.
    • Handle: RePEc:bca:bocadp:23-8
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    References listed on IDEAS

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    Cited by:

    1. Marc-André Gosselin & Temel Taskin, 2023. "What Can Earnings Calls Tell Us About the Output Gap and Inflation in Canada?," Discussion Papers 2023-13, Bank of Canada.

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    More about this item

    Keywords

    Coronavirus disease (COVID-19); Econometric and statistical methods; Monetary policy and uncertainty; Recent economic and financial developments;
    All these keywords.

    JEL classification:

    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications

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