Why are Statistics Pre-eminent in the Efficient Operation of Financial Markets?

Abstract

Efficient financial markets require accurate and trusted statistical information. Otherwise they will rely on anecdotes, rumour and possibly information that is deliberately distributed to distort markets. This will lead to markets being volatile and/or inefficient.

In this paper, I will focus on what the ABS does to provide accurate, trusted information. It complements the work the IMF has been promoting for the last six years through its Special Data Dissemination Standard (SSDS).