BERT-CBSI and FinBERT-CBSI vs. other textual-based sentiment indices

We co-plot our central bank sentiment index with other textual-based sentiment indices. 

For each central bank, we compute:  

• Gonzalez and Tadle (2021) central bank sentiment index - GTSI. 

• Loughran and McDonald (2011) central bank sentiment index - LMSI. 

• Correa et al. (2021) financial stability sentiment index - FSSI. 

The plots unanimously reveal that BERT-CBSI and FinBERT-CBSI are less noisy, especially when we compare it with LMSI and FSSI. Furthermore, our paper show that BERT-CBSI and FinBERT-CBSI strongly outperforms GTSI, LMSI, and FSSI in terms of predictive power.