Impact of Financial Analytics on Economic Forecasting and Policy Making

Uwakwe Blessing Chidiebere

University of New Haven, West Haven, Connecticut, USA.

ABSTRACT

This paper examines the significant role of financial analytics in enhancing economic forecasting and informing policy-making processes. By integrating advanced data analysis techniques, financial analytics has revolutionized how economic and financial market variables are modeled, helping to predict trends and manage risks. The paper explores the transmission mechanisms between financial and real economic variables, particularly during financial crises, and assesses the impact of these dynamics on policy decisions. Additionally, it discusses the challenges and limitations of utilizing financial analytics, including data quality issues and the complexities of integrating various financial models. The study underscores the importance of financial analytics in crafting informed economic policies and highlights potential areas for future research.

Keywords: Financial Analytics, Economic Forecasting, Policy Making, Financial Markets, Risk Management.

CITATION: Uwakwe Blessing Chidiebere. Impact of Financial Analytics on Economic Forecasting and Policy Making. Research Output Journal of Arts and Management, 2024 3(3):92-95.