Admittedly, the exchange rate channel does not always work this way in practice; among other things, exchange rates also depend on trade and current account balances and on what is happening in the economies of our trading partners; and currency values respond more to the expected pattern of interest rates here and abroad than to the current short-term rates that central banks control.
The technical issues will be discussed in detail in this workshop, but I would like to mention one general, methodological problem now: before using the relationships estimated from the Internet or social media for policy, we have to first ascertain that they are sufficiently robust, representative, and reliable. To do this we have to invest in research.