Different Approaches to Inflation Forecasting in Argentina

We apply some recently developed and more traditional methods to forecast in ation in Argentina and compare their predictive ability at di¤erent horizons. Our variety of models includes: (i) Traditional time series models -AR(1) and a monetary VAR-, (ii) a factor model combining a large number of bu...

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Autores principales: Basco, Emiliano, Blanco, Emilio, D'Amato, Laura, Garegnani, María Lorena
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2015
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Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/169227
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Sumario:We apply some recently developed and more traditional methods to forecast in ation in Argentina and compare their predictive ability at di¤erent horizons. Our variety of models includes: (i) Traditional time series models -AR(1) and a monetary VAR-, (ii) a factor model combining a large number of business cycle indicators and (iii) micro-funded models including a conventional New Keynesian Phillips Curve and one that incorporates money to evaluate its information content as a predictor of in ation. We compare the predictive performance of the di¤erent methods using the Giacomini-White test over the relevant horizons for monetary policy decisions. We nd that the monetary VAR outperforms the rest of the models.