Parsing the pulse: decomposing macroeconomic sentiment with LLMs

Report

Parsing the pulse: decomposing macroeconomic sentiment with LLMs

By Bank for International Settlements (BIS)

The study applies large language models (LLMs) to analyze financial news articles from the Wall Street Journal, generating macroeconomic sentiment indices related to growth and inflation. It decomposes these sentiment indices into their demand and supply drivers, enhancing interpretability and offering real-time insights into macroeconomic conditions.

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