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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 have argued is bound to fail. This paper studies English and German Twitter traffic about the ECB to understand whether its communication is received by non-experts and how it affects their views. It shows that Twitter traffic is responsive to ECB communication, also for non-experts. For several ECB communication events, Twitter constitutes primarily a channel to relay information: tweets become more factual and the views expressed more moderate and homogeneous. Other communication events, such as former President Draghi’s “Whatever it takes” statement, trigger persistent traffic and a divergence in views. Also, ECB-related tweets are more likely to get retweeted or liked if they express stronger or more subjective views. Thus, Twitter also serves as a platform for controversial discussions. The findings suggest that central banks manage to reach non-experts, i.e. their communication is not a road to nowhere. JEL Classification: E52, E58

Suggested Citation

  • Ehrmann, Michael & Wabitsch, Alena, 2021. "Central bank communication with non-experts: a road to nowhere?," Working Paper Series 2594, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:20212594
    Note: 203739
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    More about this item

    Keywords

    central bank communication; monetary policy; non-experts; social media;
    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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