---
title: Twitter and Monetary Policy
url: https://www.ml-quant.com/papers/ssrn/4479590/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4479590
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4479590
featured: 2025-12-28
citations: unknown
topic: Macro-Finance & Rates
---


# Twitter and Monetary Policy

Online discussions about central bank policies correlate strongly with market volatility, especially around ECB announcements.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4479590
- Identifier: SSRN 4479590
- Released: 2023-06-23
- First featured: Quant Letter No. 124 (2025-12-28): https://www.ml-quant.com/issues/2025-12-28/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Macro-Finance & Rates

## Related

- [Empirical Analysis of the Impact of Legal Tender Digital Currency on Monetary Policy -Based on China's Data](https://www.ml-quant.com/papers/arxiv/2310.07326/): The paper suggests that China should develop a more effective monetary policy while promoting Central bank digital currencies, examining their impact on China's monetary policy and money supply multiplier.
- [In-between Transatlantic (Monetary) Disturbances](https://www.ml-quant.com/papers/arxiv/2509.13578/): Research shows that European Central Bank interest rate hikes result in a depreciation of the Canadian dollar and a contraction in economic activity, mainly through international trade, while U.S. Federal Reserve shocks impact Canadian financial conditions more directly.
- [Can We Reliably Predict the Fed's Next Move? A Multi-Modal Approach to U.S. Monetary Policy Forecasting](https://www.ml-quant.com/papers/arxiv/2506.22763/): The study reveals that combining structured data with unstructured text from Federal Reserve communications improves the accuracy of central bank policy predictions.
- [Banking-System Heterogeneity and Monetary Policy Transmission in the Euro Area: High-Frequency Shocks, Local Projections, and Regime Dependence](https://www.ml-quant.com/papers/ssrn/7519040/): A 100-basis-point contractionary monetary shock lowers inflation and sales across 20 euro-area economies, with transmission strength varying by bank asset-risk exposure and assets-to-GDP ratio rather than a simple weak-strong taxonomy.
- [Monetary Policy Frictions and Nonperforming Loans](https://www.ml-quant.com/papers/repec/eee-ecofin-v-76-y-2025-i-c-s106294082400278x/): The study uses machine learning to analyze the impact of a monetary policy frictions index on commercial banks' nonperforming loans, advocating for more transparency in monetary policy transmission.
- [Monetary Transmission in Equity Markets](https://www.ml-quant.com/papers/ssrn/5078670/): The study suggests that contractionary monetary policy can cause equity outflows from mutual funds, which are then absorbed by banks charging a premium for market making.
