Central Banks#
Central banks (CBs) have long been the guardians of national economies, relying on well-established indicators like GDP, inflation rates, and employment figures. These ‘hard’ indicators are generally high-quality but are published with a lag and at low frequency. In contrast, ‘soft’ indicators like surveys offer more frequent updates but often lack the quantitative rigor of hard data. With the advent of Big Data and sophisticated computational techniques, CBs now have an opportunity to diversify their data sources.