Dr. Nils Jannsen

The purpose of the report is to provide a systematic overview of the relevant data related to Big Data and their potential for macroeconomic analysis (in particular business cycle monitoring and forecasting). In this context, both the possibilities and the challenges that may arise due to data availability, data quality, methodological requirements or the manageability of the data will be discussed in detail.

This study aims at investigating the extent and causes of revisions of output gap estimates and at analyzing methodological issues along different phases of the business cycle. Based on this, possibilities for improvement of the European Commission's current estimation approach are elaborated and evaluated.

When central banks pump money into the banking system during a financial crisis, such a policy is initially very effective, but the impact declines over the course of the crisis. That is the conclusion drawn by researchers at the Institute for the World Economy (IfW), who have empirically analyzed the transmission of monetary policy during financial crises.