Riccardo Cristadoro, Giovanni Veronese, 29 October 2007

Real-time policy-making requires real-time monitoring. The recent turmoil in international financial markets, for example, raised concerns that it would dampen euro-area growth prospects. Surveys of the euro-area in August and September revealed that business expectations had indeed deteriorated. Interpreting such data in real time is notoriously difficult. Statistical techniques provide a systematic and more reliable means of extracting real-time indicators from current data: “€-coin”, a monthly indicator published by the Banca d'Italia and CEPR, is a useful tool to monitor the evolution of the euro-area growth as the financial turmoil unfolds.

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CEPR Policy Research