BoE paper: mining newspaper text can boost forecasts
Authors design “powerful new method” of incorporating text information into macroeconomic forecasts
Information taken from the texts of newspapers using AI tools can “significantly” improve forecasts of the economy, researchers say in a new Bank of England working paper.
Eleni Kalamara, Arthur Turrell, Chris Redl, George Kapetanios and Sujit Kapadia combine machine learning with “text-feature engineering”, which draws out a “large number of features”, or regressors, from the text of three popular UK newspapers.
In contrast to many other studies of information ‘mined’ from text, which have
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