MNI BRIEF: Central Banks Need To Refine Models-PBOC Researcher

Central banks need to refine macroeconomic models to address uncertainties in the economy and finance, and integrate factors such as geopolitical shifts, the application of artificial intelligence, and climate change into their analysis, said Wang Xin, director of the Research Bureau of the People’s Bank of China, calling for greater coordination among central banks. 

The marked increase in global economic uncertainties significantly impacts central banks' core objectives—price and financial stability, while geopolitical changes and rising tariffs are damaging global industrial and value chains, increasing transaction costs, and causing adverse effects on the international economy, Wang pointed out. (See MNI: Panda Market Growth Seen Luring Brazil, Other EM Issuers)