Monetary Policy Statement Database Development

This technical report introduces the Monetary Policy Statement Database (MPSD), which includes 6,693 statements from 51 central banks worldwide covering the period from 1990 to 2024. The report outlines a reproducible pipeline that integrates standard natural language preprocessing with large language model (LLM) tools for cross-country analysis of monetary policy communications. It presents four key findings: the lengthening of statements post-Global Financial Crisis, the comovement of inflation references during global inflation episodes, the attribution of global financial conditions primarily to U.S. macroeconomic developments, and the predictive nature of statement sentiment on the Global Financial Cycle. The MPSD aims to facilitate reproducible research in monetary policy communication and international transmission, addressing existing gaps in the analysis of central bank communications. The report also discusses the technical architecture and methodologies employed in developing this database, emphasizing its significance for researchers in the field.