Media sentiment indicators from Canadian news, when added to a New Keynesian model with endogenous central-bank response, improve out-of-sample forecasts and account for part of monetary-policy propagation to output and prices.
Taking the Fed at its Word: A New Approach to Estimating Central Bank Objectives using Text Analysis
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Monetary Policy in the Media Spotlight: Sentiments, Signals, and Economic Impact
Media sentiment indicators from Canadian news, when added to a New Keynesian model with endogenous central-bank response, improve out-of-sample forecasts and account for part of monetary-policy propagation to output and prices.