The ECB learns how to use its treasure trove of data17. May 2021
The ECB learns how to use its treasure trove of data
In a project funded by the German Federal Ministry of Economics and Technology, Frankfurt-based financial scientist Sascha Steffen of the Frankfurt School of Finance & Management. is investigating which artificial intelligence (AI) methods can be used to exploit the ECB’s enormous treasure trove of data.
The datasets stored by the ECB over many years include market – and balance sheet figures of companies as well as data on households, companies and banks. Machine learning is used to develop algorithms that search for patterns, correlations and regularities in the data sets based on statistical models.
With the help of AI, trends become visible, new conclusions are possible. The high-frequency data can be used, for example, to make timely statements about the development of gross domestic product , electricity consumption or container handling.
The ECB chief Christine Lagarde has already pointed out further uses of these high-frequency data. These include, for example:
– Daily analysis of MTS – Markets data to create government bond yield curves;
– Text mining projects using the Factiva media platform,
– annual bank audits.