Page 32 - Invited Paper Session (IPS) - Volume 2

IPS178 Kuniko M.
3-1. The Bank’s contribution to the improvement of statistics from a user
perspective and a synergy between statistics compilers and users
The Research and Statistics Department at the Bank has an advantage in
giving feedback between statistics compilers and users in that its
organizational structure is comprised of research divisions and statistics
compilation divisions. Within the department, from a user perspective, the
research divisions can voluntarily request the improvement of the quality of
official statistics compiled by the statistics divisions, such as financial statistics,
1
price indexes, and the Tankan. The statistics divisions then also take into
account feedback from research divisions, in addition to those received
through the public consultation process, as mentioned in the section 2. After
a request is incorporated into the statistics, economists at the research
divisions can make use of the improved statistics, ensuring the accuracy of
their analysis in order to make appropriate judgements on economic
conditions. This internal feedback loop between the research and statistics
divisions can produce synergy effects within the RSD.
For example, in the case of Tankan, a proposal was made from the RSD’s
research division to introduce survey items for inflation outlook. The RSD’s
statistics division included the proposal in the basic policy for the revision of
Tankan. Through a consultation process, the statistics division then decided
on the introduction of new survey items for the inflation outlook from the
March 2014 survey. Since the new inflation outlook survey items were
incorporated into the Tankan, economists at the Bank have frequently used
the survey for their analysis examining firms’ inflation expectations. In this way,
the synergy effect produced between the analytical and statistics compilation
divisions through user feedback for the improvement of statistics is
incorporated and this facilitates a new type of analysis.

3-2. Other examples of the synergy between statistics users and
compilers — development of economic indicators by the research
divisions at the Bank
In assessing economic developments, the Economic Research Division
(ERD) regularly compiles several indicators, such as the Consumption Activity
Index (CAI), and the Real Exports and Imports (REI). The CAI is a comprehensive
index which captures private consumption movements as an analytical tool;
the REI is an economic indicator compiled in line with exports and imports in
the real GDP to measure the real value of export/import goods. The CAI and

1 “Official statistics” are defined by the Statistics Act as the statistics compiled by the
administrative organs, including the Bank of Japan.
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