Central banks are turning to Big Data to help them craft policy

CENTRAL bankers around the world have set up or are creating departments to embrace Big Data in the quest for deeper insight into the economies they manage. David Hardoon, chief data officer at the Monetary Authority of Singapore, in a recent speech said: "Isaac Asimov once said, 'I do not fear computers. I fear the lack of them.'" "We are now starting to put in place the necessary tools, infrastructure and skillsets to harness the power of data science to unlock insights, sharpen surveillance of risks, enhance regulatory compliance and transform the way we do work." Authorities like Mr Hardoon are tapping publicly available sources such as Google Trends and jobs websites to help "nowcast" their economies, and confidential data like credit registers that can help identify a stressed bank.