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

Central banks;
Financial markets;
High-frequency trading;



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.

    Download file

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:

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License ( 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.


Chen, M. K. (2013). The Effect of Language on Economic Behavior: Evidence from Savings Rates, Health Behaviors, and Retirement Assets. The American Economic Review. 2013 Apr;103(2):690-731. PMID: 29524925 

CNBC. (2015)., SNB leaves policy vacuum after shock removal of franc cap. https:// 

DeCambre, M. (2021, November 30). Powell says time to retire “transitory” when talking about inflation—and stock markets tank. MarketWatch.­ry/powell-says-time-to-retire-transitory-when-talking-about-inflationand-stock-markets-tank-11638305094 

Ehrmann, M. & Fratzscher, M. (November 2005). How Should Central Banks Communicate?, ECB Working Paper No. 557, Available at SSRN:  or 

Federal Reserve System. (n.d.). The Fed – What is forward guidance, and how is it used in the Federal Reserve’s monetary policy? Board of Governors of the Federal Reserve System.­eral-reserve-monetary-policy.html 

Galardo, M. & Guerrieri, C. (2017). The Effects of Central Bank’s Verbal Guidance: Evidence from the ECB (July 19, 2017). Bank of Italy Temi di Discussione (Working Paper) No. 1129, Available at SSRN:  or  

Keim, D. (2015, April 15). High-frequency Trading: Profiting from News. Knowledge at Whar­ton.

Merriam-Webster. (2022, December 14). Transitory, 

Myers, L. (2015, February 23). Repurposing a Microwave Tower For Wall Street Trading. Ma­goda. 

Nguyen, J. (2019, July 24). How a simple statement from Fed Chair Jerome Powell can cause the markets to fluctuate. Marketplace.­ple-statement-from-fed-chair-jerome-powell-can-cause-the-markets-to-fluctuate/ 

Shobhit, S. (December 31, 2021). The World of High-Frequency Algorithmic Trading. Investo­pedia.­gorithmic-trading.asp 

Siegel, R. (2021, December 13). The Fed’s inflation challenge: Getting the policy and the mes­saging right. Washington Post. 

Additional reading

Beschwitz, B., Keim, D., & Massa, M. (2013). Media-Driven High Frequency Trading: Evidence from News Analytics. SSRN Electronic Journal. 

Grandview Research. (n.d.). High-frequency Trading Server Market Size Report, 2021-2028. https:// 

El-Erian, M. (2020, January 10). Central banks are now the markets’ best friends. The Guardian.

Association of Economists and Managers of the Balkans – UdEkoM Balkan
179 Ustanicka St, 11000 Belgrade, Republic of Serbia

LIMEN conference publications are licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.