Keywords
How to Cite
Abstract
This paper examines the integration of Big Data analytics into monetary policy transmission mechanisms. As traditional macroeconomic data often exhibits significant reporting lags, Central Banks are increasingly exploring high-frequency, granular datasets to enhance policy efficacy. The study evaluates how real-time digital transaction data, consumer sentiment indicators, and AI-driven predictive models can shorten transmission lags and improve the precision of policy responses, with a specific focus on the potential for emerging economies to adopt data-driven frameworks. The research highlights the transition from reactive to proactive economic governance, demonstrating that the systematic incorporation of high-frequency data provides the speed and granularity required for effective management in a digital-first economy.
References
1. Billi, R. M., & Veldkamp, L. L. (2025). Artificial intelligence in central banking: Promises and risks. Journal of Macroeconomics, 84, 103-119.
2. Doerr, S., Gambacorta, L., & Serena Garralda, J. M. (2021). Big data and machine learning in central banking. BIS Working Papers, No 930. Bank for International Settlements.
3. Gourinchas, P. O., & Rey, H. (2024). The digital transformation of international finance and its implications for monetary policy transmission. Journal of International Economics, 148, 103-125.
4. Hambur, J., & Haque, M. (2023). Identifying monetary policy shocks using high-frequency data. Research Discussion Paper, Reserve Bank of Australia.
5. IMF. (2025). Big data and artificial intelligence in central banking: Policy implications for emerging markets. International Monetary Fund Policy Paper.
6. Lenzu, S. (2026). The impact of artificial intelligence on monetary policy transmission and financial stability. Economic Review and Policy Research, 18(1), 112-135.
7. Li, X., Wang, Y., & Zhang, H. (2022). BigTech credit and the transmission of monetary policy: Evidence from emerging markets. Journal of Financial Intermediation, 50, 100958.
8. Shin, H. S. (2024). The digital economy and the future of central banking. Oxford Review of Economic Policy, 40(2), 201-218.