The pulse of the economy
Lucrezia Reichlin of the London School of Business is the third economist to be the focus of the CEPR/UBS Women in Economics series. She 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.