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Big data in monetary policy analysis—a critical assessment

Author

Listed:
  • Bogner Alexandra

    (1 Universität Regensburg, Chair for International and Monetary Economics, 93040, Regensburg, Germany)

  • Jerger Jürgen

    (2 Universität Regensburg, Chair for International and Monetary Economics, 93040 Regensburg, Germany)

Abstract

Over the last years the use of big data became increasingly relevant also for macroeconomic topics and specifically the conduct and analysis of monetary policy. The aim of this paper is to provide a survey of these applications and the relevant methods. The rationale for doing so is twofold. First, there is no straightforward definition of “big data”. Since macroeconomics and monetary policy analysis has a long tradition in quite sophisticated and data-intensive empirical applications the nature of the innovation big data is indeed bringing to the field is reflected upon. Second, concerning statistical / empirical methods the analysis of big data necessitates the use of different tools relative to traditional empirical macroeconomics which are in some cases a complement to more traditional methods. Hence big data in monetary policy is not just the application of well-established methods to larger data sets.

Suggested Citation

  • Bogner Alexandra & Jerger Jürgen, 2023. "Big data in monetary policy analysis—a critical assessment," Economics and Business Review, Sciendo, vol. 9(2), pages 27-40, April.
    • Handle: RePEc:vrs:ecobur:v:9:y:2023:i:2:p:27-40:n:3
    DOI: 10.18559/ebr.2023.2.733
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    References listed on IDEAS

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    More about this item

    Keywords

    big data; monetary policy; text analysis; nowcasting;
    All these keywords.

    JEL classification:

    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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