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.


  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?

  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.