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The Spring-Summer 2019 issue of the IMF Research Perspectives explores how technology deals with old questions. Articles discuss the ways technological progress and the increased availability of data have helped in some areas, while presenting new challenges for analyzing various matters. The issue also includes an interview with Gita Gopinath, the new director of the IMF Research Department.
Samuel P. Fraiberger, Dongyeol Lee, Mr. Damien Puy, and Mr. Romain Ranciere

). 2. News-Sentiment measures To measure sentiment, we use pre-existing dictionaries of tonal words. Given the range of topics covered in our corpus of news, we first combine dictionaries of positive and negative words compiled by Loughran and McDonald (2011) for financial texts and by Young and Soroka (2012) for political and economic texts. Next, for each word in a dictionary (e.g. “lose”), we collect all of its inflections (“losing”, “loser”, “lost”, “loss”, etc.) that are present in our corpus and include them in the dictionary, obtaining a list of 7

Samuel P. Fraiberger, Dongyeol Lee, Mr. Damien Puy, and Mr. Romain Ranciere
We assess the impact of media sentiment on international equity prices using more than 4.5 million Reuters articles published across the globe between 1991 and 2015. News sentiment robustly predicts daily returns in both advanced and emerging markets, even after controlling for known determinants of stock prices. But not all news-sentiment is alike. A local (country-specific) increase in news optimism (pessimism) predicts a small and transitory increase (decrease) in local returns. By contrast, changes in global news sentiment have a larger impact on equity returns around the world, which does not reverse in the short run. We also find evidence that news sentiment affects mainly foreign – rather than local – investors: although local news optimism attracts international equity flows for a few days, global news optimism generates a permanent foreign equity inflow. Our results confirm the value of media content in capturing investor sentiment.