Econometrics is important — it is used constantly in business, finance, economics, government, consulting and many other fields. Econometric models are used routinely for tasks ranging from data description to policy analysis, and ultimately they guide many important decisions. To develop a feel for the tremendous diversity of econometric applications, let’s explore some of the areas where they feature prominently, and the corresponding diversity of decisions supported. One key field is economics (of course), broadly defined. Governments, businesses, policy organizations, central banks, financial services firms, and economic consulting firms around the world routinely use econometrics. Governments, central banks and policy organizations use econometric models to guide monetary policy, fiscal policy, as well as education and training, health, and transfer policies.