Measuring Monetary Policy Coordination from Central Bankers’ Speeches

We propose a forward-looking measure of implicit international monetary policy coordination based on a dynamic similarity network of central bankers’ speeches. By analyzing speech transcripts from the Bank for International Settlements database, we show that this measure predicts policy alignment earlier than traditional instrument-based indicators. Our results highlight the central role and orthodox approach of G10 institutions and reveal that coordination rises sharply during global crises. This framework offers policymakers and investors a systematic tool to anticipate international policy trends through text analysis.