Description

Using a representative agent in the monetary policy framework and in the evaluation of economic conditions and forecasting of the variables of interest has been very useful for central banking professionals. However, the digitization of activities has made it more difficult to measure economic relations and it is likely that the mechanisms of monetary policy transmission have also changed. Central banks must be aware of the difficulties that these trends pose for achieving their objectives. In this document we present the main challenges for statistical, research and model development, emphasizing the importance of information granularity, particularly on prices, labor and financial markets, and the need to share data among government agencies.