The Fed will track the mood on the Internet
Since December 2011, one of the 12 regional banks of the Federal Reserve System plans to launch an ambitious project to monitor social media , including Facebook, Youtube, Twitter and other blogs, as well as media content. The goal of the project is to identify leaders of opinions and study the public reaction to economic decisions that the Fed makes.
Ideally, regulators probably want to get some objective and updated “Internet sentiment index”, which in the future may become an important economic indicator, such as, for example, CSI (Consumer Sentiment Index).
The mood of the public greatly influences the policy of the Fed and stock market indices. Such an example. Every month during the last 35 years, the financial world is waiting for the publication of a new CSI index (consumer sentiment index). The index reflects the optimism and confidence with which the US population looks to the future. The figure was obtained from the results of an anonymous telephone survey of only 500 random people who are asked five simple questions. The scores averaged to one clear figure.
Despite the simplicity and primitiveness of this survey, the dynamics of CSI proved to be a reliable predictive indicator of the movement of indices. This figure has now become very important, it sends a clear signal to market players, as well as to the Fed and other economic institutions. They all follow this indicator, which is no less important for markets and the economy than, for example, GDP or unemployment.
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The Internet Sentiment Analysis and Social Media Monitoring Solution may well complement CSI in the future if it is also calculated according to simple and understandable rules, at least using a linguistic analysis of a random selection of blogs.
The main function of the Fed is to manage the issue of US dollars. It turns out that now the world financiers decided to closely monitor the mindsets of the online society and take this information into account to regulate the value of money. There is nothing strange in this, because the health of the world economy directly depends on the optimism of people, ordinary citizens. Financiers by the nature of their activities are obliged to use the tools of sociology and psychology. Roughly speaking, if ordinary people become unhappy - you need to reduce the cost of loans, distribute subsidies and lower the discount rate, if the optimism is above average - it is possible that a bubble is inflated, it is time to raise the discount rate, raise the value of money and let off steam.
Maybe the Fed’s attention to the blogosphere is also connected with the Occupy Wall Street flash mob, which began in New York and spread to more than 900 cities in the world, actively being heated in the blogosphere. This movement clearly showed that a virtual online negative can transform into very real trouble.
Analysis of attitudes in the blogosphere by keywords is already used as an effective tool for market analysis of individual companies and brands, as well as in political technologies. Thus, on the eve of the 2012 elections, almost all potential candidates for the presidency of the United States presented very impressive technological platforms for monitoring social media. It is clear that such tools have a future.
Ideally, regulators probably want to get some objective and updated “Internet sentiment index”, which in the future may become an important economic indicator, such as, for example, CSI (Consumer Sentiment Index).
The mood of the public greatly influences the policy of the Fed and stock market indices. Such an example. Every month during the last 35 years, the financial world is waiting for the publication of a new CSI index (consumer sentiment index). The index reflects the optimism and confidence with which the US population looks to the future. The figure was obtained from the results of an anonymous telephone survey of only 500 random people who are asked five simple questions. The scores averaged to one clear figure.
Despite the simplicity and primitiveness of this survey, the dynamics of CSI proved to be a reliable predictive indicator of the movement of indices. This figure has now become very important, it sends a clear signal to market players, as well as to the Fed and other economic institutions. They all follow this indicator, which is no less important for markets and the economy than, for example, GDP or unemployment.
')
The Internet Sentiment Analysis and Social Media Monitoring Solution may well complement CSI in the future if it is also calculated according to simple and understandable rules, at least using a linguistic analysis of a random selection of blogs.
The main function of the Fed is to manage the issue of US dollars. It turns out that now the world financiers decided to closely monitor the mindsets of the online society and take this information into account to regulate the value of money. There is nothing strange in this, because the health of the world economy directly depends on the optimism of people, ordinary citizens. Financiers by the nature of their activities are obliged to use the tools of sociology and psychology. Roughly speaking, if ordinary people become unhappy - you need to reduce the cost of loans, distribute subsidies and lower the discount rate, if the optimism is above average - it is possible that a bubble is inflated, it is time to raise the discount rate, raise the value of money and let off steam.
Maybe the Fed’s attention to the blogosphere is also connected with the Occupy Wall Street flash mob, which began in New York and spread to more than 900 cities in the world, actively being heated in the blogosphere. This movement clearly showed that a virtual online negative can transform into very real trouble.
Analysis of attitudes in the blogosphere by keywords is already used as an effective tool for market analysis of individual companies and brands, as well as in political technologies. Thus, on the eve of the 2012 elections, almost all potential candidates for the presidency of the United States presented very impressive technological platforms for monitoring social media. It is clear that such tools have a future.
Source: https://habr.com/ru/post/131000/
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