Banco de México

We develop a DSGE model for a small open economy that incorporates a Flexible Credit Line (FCL) for extending foreign exchange reserves. The economy pays a commitment fee and benefits from a safeguarding mechanism that signals strong fundamentals the …

This paper derives principles for maximizing verbatim replication of key central bank messages by applying common Natural Language Processing (NLP) techniques. In particular, we lay out an application of the n-gram bag-of-words model to inform …