Big Data Experiment Tests Central Banking Assumptions in Norway
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Central bankers may do well to pay less attention to the bond market and their own forecasts than they do to newspaper articles.
That’s the somewhat heretical finding of a new algorithm-based index being tested at Norway’s central bank in Oslo. Researchers fed 26 years of news (or 459,745 news articles) from local business daily Dagens Naringsliv into a macroeconomic model to create a to help it gauge the state of the economy.