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Lucrezia Reichlin uses the knowledge available today to better predict tomorrow. A pioneer of what is now known as big data, the expert on business cycles and monetary policy looks at forecasting the status of the economy.
Are we moving to a world where anyone can issue money? Lucrezia Reichlin, London School of Business, the third subject of CEPR & UBS’s Women in Economics profiles, looks to a future where the new crypto-currency technologies will be used for payment systems but the money behind them will remain as a monopoly of the central banks - fundamentally the value of money is guaranteed by the credibility of the state.
Lucrezia Reichlin, subject of the third profile in the new CEPR/IBS Women in Economics series believes that, in an increasingly globalised world there is more need than ever for Europeans to work together in order to make our currencies robust, to cope with the refugee crisis and to defend ourselves from the threat of protectionism. A goal that is increasingly difficult at a time when people are saying that more power should be repatriated at the national level.
Building a robust system as we think about and try to understand the last crisis is key to recognising and diffusing the next crisis.
Lucrezia Reichlin of the London School of Business is one of the pioneers of Big Data and, along with her co-authors, has revolutionised how models are built. Here she talks about the need for parsimonious models that exploit a data-rich environment to capture the simple drivers of the economy from complex data sets.
Measuring the activity within an open economy not only helps us to predict what is coming, but also to understand what is happening now and to see and learn from our mistakes.