Real-Time Inflation Forecasting in a Changing World

In this paper we show in a real-time inflation forecast evaluation shows that averaging over many predictors in a model that at least allows for structural breaks in the error variance results in very accurate point and density forecasts, especially for the post-1984 period. Published in the Journal of Business & Economic Statistics, 2013.

January 2013 · Jan J. J. Groen, Richard Paap, Francesco Ravazzolo