Importance of Language in Central Banks’ Management of Financial Markets: Creating Trends and New Vocabulary

Borislav Marušić – College of Applied Sciences “Lavoslav Ružička” in Vukovar, Županijska 50, 32000 Vukovar, Croatia

Branimir Kurmaić – College of Applied Sciences “Lavoslav Ružička” in Vukovar, Županijska 50, 32000 Vukovar, Croatia

Abstract

Language is often considered a living organism that changes with the times. It is a fact that the glossary of business English has grown in interesting ways in the age of day trading. The ever-growing importance of semantics in financial statements or, perhaps even more importantly, cen­tral bank statements seems to have coincided with the rise of the internet as the dominant way of information in the financial industry. Specially pro­grammed algorithms scan Reddit boards in search of new trends, informa­tion is absorbed constantly, and trades are realized in seconds. In such an environment, officials’ statements have become more obtuse, the language more nuanced, and meanings blurred. The authors analyze the way central banks speak to the markets, how that impacts trends in the trading of finan­cial securities, and provide an overview of some of the vocabulary impacted directly or indirectly by their actions that are now widely used by the finan­cial media, institutions and day traders.

LIMEN Conference

8th International Scientific-Business Conference – LIMEN 2022 – Leadership, Innovation, Management and Economics: Integrated Politics of Research – CONFERENCE PROCEEDINGS, Hybrid (EXE Budapest Center, Budapest, Hungary), December 1, 2022,

LIMEN Conference proceedings published by the Association of Economists and Managers of the Balkans, Belgrade, Serbia

LIMEN Conference 2022 Conference proceedings: ISBN 978-86-80194-66-0, ISSN 2683-6149, DOI:  https://doi.org/10.31410/LIMEN.2022

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. 

Suggested citation

Marušić, B., & Kurmaić, B. (2022). Importance of Language in Central Banks’ Management of Financial Markets: Creating Trends and New Vocabulary. In V. Bevanda (Ed.), International Scientific-Business Conference – LIMEN 2022: Vol 8. Conference proceedings (pp. 67-73). Association of Economists and Managers of the Balkans.  https://doi.org/10.31410/LIMEN.2022.67

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Additional reading

Beschwitz, B., Keim, D., & Massa, M. (2013). Media-Driven High Frequency Trading: Evidence from News Analytics. SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.2356547 

Grandview Research. (n.d.). High-frequency Trading Server Market Size Report, 2021-2028. https:// www.grandviewresearch.com/industry-analysis/high-frequency-trading-servers-market 

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