Talking to firms aids central banks at ‘turning points’ – BoC paper
Qualitative information is particularly useful when timely official data is lacking, authors say
Central banks’ contacts among local businesses provide critical information for monetary policy-making, especially at times of great uncertainty, new research finds.
Qualitative field research in monetary policy-making, published by the Bank of Canada, explores what the authors say is a neglected area of economics. Chris D’Souza and Jane Voll say qualitative information gathered from interviews with industry contacts provides an important complement to central banks’ quantitative tools.
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