August 5, 2012
Central Banks are using Google data in order track economic trends before they become economic trends. But, while Bloomberg leads us to believe this has only just begun, the truth of the matter is quite different. The article puts across the feeling that Google Trends is a breakthrough in behavioral research, and that worldwide central banks are beginning to use the data in order gather information on the people who, in Bloomberg’s words, they “oversee.” But, Google is but one piece in a complex puzzle of Full Spectrum Dominance, using the diverse interplay of multiple social media interfaces and Pentagon digital-avatars of U.S. citizens predicting where individuals in the population will be and when. And, they are confident that their formulas are accurate.
Says the article, the Federal Reserve and the central banks of England, Israel, Italy, Spain and Chile have recently embarked upon studies to determine the helpfulness of Google search volumes in the pursuit of tracing trends in the economies they “oversee,” in the language of Bloomberg News. “The guardians” – their word, not mine – are pursuing techniques to “deploy nimbler policy responses.” According to Bloomberg, Erik Brynjolfsson, a member of the Federal Reserve Bank of Boston’s Academic Advisory Council, believes that “greater foresight could make the difference between a slowdown and a recession, a recovery and an inflation-stoking boom.