Central Bank

Central banks play a crucial role in managing national economies, primarily aiming to maintain price stability and foster economic growth. Current research emphasizes analyzing central bank communication, employing advanced natural language processing (NLP) techniques like large language models and zero-shot classification to gauge policy sentiment and its impact on financial markets. This work also extends to using machine learning, such as causal-graphical normalizing flows, to assess the broader societal effects of central bank policies, for example, on poverty reduction. These analytical advancements offer improved understanding of monetary policy transmission mechanisms and their consequences, informing both economic policy and the development of more sophisticated decision-support systems.