Modern macroeconomic study is blessed with advent of high-speed computational technique and big data resources. A new dimension in dissemination of knowledge in public policy making has been made possible by big data. There is emergence of big data ecosystem that uses various software and hardware including mobile applications, sensors, satellites and internet of things. This enable forecasting of business cycles with the aid of econometric models based on large number of variables. The applications of the models have influenced macroeconomic policies and contributing to public policy formulation in various countries. During the recent pandemic, the policy making bodies utilized the vast amount of real time data collected across the world. Big data has the potential of being instrumental in decisions concerned with public policies both at multilateral level and country level. World Trade Organization, World Bank, IMF and UNCTAD are a few multilateral agencies that are contributing in collection and dissemination of big data. There are challenges associated with availability and reliability of the data. A conscious approach of listing the best practices should contribute in the field of macroeconomic studies. The paper tries to contribute in the literature as a resource for big data usage in macroeconomics modeling and public policy.
Keyword:Macroeconomics,Big Data,Public policy
Amlan Ray