Financial sector still a headache for central bank modellers
The dynamics of the financial sector have always presented a challenge to economists. The sector is prone to sudden tipping points, from bank runs to flash crashes, which can be hard to anticipate. Links between the macroeconomy and financial sector form a feedback mechanism that can amplify shocks, potentially catching policy-makers unaware.
The global financial crisis and the Covid-19 recession have shown how integral financial variables are to macroeconomic outcomes – in the former case
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
More on Economic modelling
Remittances to Mexico reach record high, says Dallas Fed
Researchers say strong US construction sector fuels funds transfers
FOMC members’ narratives add value to projections, finds paper
Both staff and FOMC members' projections aid forecasting, refuting Romer and Romer
Canadian official says mortgage rates not big cause of inflation
Kozicki says taking home loans out would make small dent in core reading
Colombian research offers advice on modelling Covid-19 shock
Pandemic is challenging to model due to its transitory impact, authors say
Jordan revamps forecast model with richer interactions
Jam2.0 adds a fiscal block and captures more complexities of central bank policy
Europe unlikely to see major gas shortage this winter – research
Risks remain if alternative sources of natural gas falter, says Fed economist
Focus is needed on improving central bank forecasts
Charles Goodhart believes tougher action over forecasting errors is preferable to policy-maker performance-related pay
Bernanke to lead BoE review of inflation forecasting
Former Federal Reserve chair will work with Bank of England officials