MGCodesandStats

Could you imagine a future where computers made economic decisions rather than governments and central bankers? With all of the economic mishaps we've been seeing over the past decade, one could say it isn't a particularly bad idea! Natural language processing could allow us to make more sense of the economy than we do currently. As it stands, investors and policymakers use index benchmarks and quantitative measures such as GDP growth to gauge economic health. That said, one potential application of NLP is to analyse text data (such as through major economic policy documents), and then "learn" from such texts in order to generate appropriate economic policies independently of human intervention. In this example, an LSTM model is trained using text from a sample ECB policy document, in order to generate "new" text data, with a view to revealing insights from such text that could be used for policy purposes.