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Now-Casting and the Real-Time Data Flow

  • Martha Banbura
  • Domenico Giannone
  • Michèle Modugno
  • Lucrezia Reichlin

The term now-casting is a contraction for now and forecasting and has been used for a long time in meteorology and recently also in economics. In this chapter we survey recent developments in economic now-casting with special focus on those models that formalize key features of how market participants and policymakers read macroeconomic data releases in real-time, which involves monitoring many data, forming expectations about them and revising the assessment on the state of the economy whenever realizations diverge sizeably from those expectations.

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Paper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers ECARES with number ECARES 2012-026.

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Length: 52 p.
Date of creation: Aug 2012
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Handle: RePEc:eca:wpaper:2013/125192
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