Transparency and deliberation within the FOMC: a computational linguistics approach

Abstract

How does transparency, a key feature of central bank design, aect the deliberation of monetary policymakers? We exploit a natural experiment in the Federal Open Market Committee in 1993 together with computational linguistic models (particularly Latent Dirichlet Allocation) to measure the eect of increased transparency on debate. Commentators have hypothesized both a benecial discipline eect