Statistics of Search Queries in Google as an Indicator of Financial Conditions

Abstract

The article deals with opportunities and limits of Google search queries statistics as an indicator of financial conditions. The methodological issues and empirical results of the use of such indicators in foreign countries are discussed. It is shown that this statistics should be incorporated in an econometric model of individuals deposit growth in Russia. A composite indicator of financial situation allowing for shifts in financial expectations of individuals and entities is also proposed. It is proved that such measures may be good complements for traditional indicators to monitor financial conditions, which are based on the interview method.