Friday, 26 June 2009

KITT works for the Reserve Bank of New Zealand

The latest RBNZ bulletin introduces the RBNZ's new DSGE model for forecasting and policy design: the Kiwi Inflation Targeting Technology (KITT).

KITT is providing our inflation forecasts. That's so awesome. I'm now imagining that the cluster of computers they have running the numbers has a front end with whooshing red lights showing that it's working, and the forecast being read by KITT in William Daniels's voice:
"Alan, reducing the interest rate further risks inflation outcomes well beyond my specified bounds."

"Dammit KITT we're in a recession here! Gimmie all you got!" (and hits the Turbo Liquidity Boost button).

The happiest moment for an 8 year old Eric was when the World of Wheels car show came to Winnipeg and I got to sit in KITT. If it turns out that KITT is a macroeconomist, I might have minor regrets about having gone down the micro route. Oh well. Massive kudos to RBNZ for choosing such an awesome acronym.

2 comments:

  1. The Norges Bank model is called NEMO, and the Riksbank has RAMSES. Canada's model is called ToTEM. Is KITT more or less awesome than these?

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  2. I have a hard time imagining what could be more awesome than KITT. A talking '82 Trans Am that could also fly and was bulletproof. Is it possible for anything to be more awesome? NEMO was a sub commander, but I'd bet that KITT could have handled underwater with a couple of simple modifications by April. Ramses: Kitt could TurboBoost over his pyramids, so KITT wins. ToTEM: KITT would show proper respect for American Indian beliefs, but if push came to shove, he could take out anybody's animal spirit companion/protector.

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