Central Bank Omnipotence Monitor – 1.31.2020

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  • Attention on and cohesion of Central Bank macro narratives rose sharply in January.
  • We believe that this is largely the result of a (hopefully!) short-term crystallization of language on many topics around language describing coronavirus-related risks.
  • In short, the narrative being promoted by missionaries is that central banks can and must step in quickly to stabilize any risks created by a potential outbreak.
  • We think that the emergence of this narrative is largely responsible for the return of an explicit bad-news-is-good-news regime in early February.
  • We wouldn’t understate this one – the fiat news utilization is at highs since we have tracked it, and the missionary behavior on this issue is strong.
  • Separately we observe that climate change and inequality topics continue to move toward a central part of the Central Bank narrative. Take note.

Narrative Map

Source: Quid, Epsilon Theory

Narrative Sentiment Map

Source: Quid, Epsilon Theory

Narrative Attention Map

Source: Quid, Epsilon Theory

Narrative Attention


Narrative Cohesion


Fiat News Index


Narrative Sentiment

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