Technological innovation has led to an explosion of data. The benefits to the global economy and financial system from central banks modernising their approach to data could be substantial. While central banks’ core functions and mandates have not changed in half a century, they suddenly find themselves with access to vastly wider and deeper data sources. This ‘information revolution’ alongside the evolving macroeconomic environment, geopolitical risks, budgetary and regulatory constraints and the structural changes of capital markets is posing challenges for central banks and forcing them to adapt to different ways of sourcing, handling, integrating and using data.
This roundtable will explore three key areas that central banks must consider for data categorisation, integration and management: monetary policy decision-making, promoting financial stability and reserves management. Key issues for discussion include:
– The use and development of big data capabilities by central banks following the 2008 financial crisis
– The growing importance of non-traditional data sources in helping central banks respond to market conditions in policy decisions
– Enhancing economic statistics via ‘nowcasting’, using wide ranges of data at mixed frequencies and producing forecasts that can be updated almost in real time
– The inclusion and application of new data by central banks in measuring economic performance, monitoring markets and financial risks and developing early warning systems
This off-the-record meeting is aimed primarily at senior representatives from across central banks and other public financial institutions.
This is the first of two roundtables hosted by OMFIF and State Street Bank to better understand the challenges and opportunities facing central banks in the digital age. The series will culminate in the publication of a solution-driven report in 2023.
This meeting will be conducted under the OMFIF Rules.
This event is part of the OMFIF Institute for Economic and Monetary Policy, OMFIF’s core stream of activities covering economic and monetary policy and the political economy. OMFIF is an independent think tank for central banking, economic policy and public investment, providing a neutral platform for best practice in worldwide public-private sector exchanges worldwide. For membership enquiries please contact Jamie.email@example.com, or for further information please see the OMFIF website.
In partnership with: