Since the financial crisis in 2007–08, central bank balance sheets in advanced economies have expanded significantly. This expansion has not led to inflation risks (at least not to date), but it has raised concerns about financial stability, which have been especially vocal in the euro area....

This paper formalizes the process of updating the nowcast and forecast on output and inʿation as new releases of data become available. The marginal contribution of a particular release for the value of the signal and its precision is evaluated by computing "news" on the basis of an evolving...