Risky news and credit market sentiment

In the new CAMP Working Paper 14/2023, Labonne and Thorsrud show how one can use textual economic news combined with a shallow Neural Network to construct an alternative financial indicator based on word embeddings. By design the index associates growth-at-risk to news about credit, leverage and funding, and the authors document that the proposed indicator …

Narrative monetary policy surprises and the media

In the new CAMP working paper 06/2019, ter Ellen, Larsen and Thorsrud use textual data to identify “narrative monetary policy surprises”, defined as the change in economic media coverage explained by central bank communication accompanying interest rate meetings. Their identification scheme and data provide narrative surprise measures that are uncorrelated with conventional monetary policy surprises, and …

FNI Update October – Is the business cycle turning?

About the index The Financial News index (FNI) is designed to track Norwegian GDP growth and the business cycle at high frequency. The underlying indicators are daily time series representing how much the media writes about various topics. To read more about the FNI, visit our website. To read more about the use of textual …