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AbstractThis paper reexamines the forecasting ability of Phillips curves from both an uncon- ditional and conditional perspective by applying the method developed by Giacomini and White (2006). We find that forecasts from our Phillips curve models tend to be unconditionally inferior to those from our univariate forecasting models. Significantly, we also find conditional inferiority, with some exceptions. When we do find improvement, it is asymmetric – Phillips curve forecasts tend to be more accurate when the economy is weak and less accurate when the economy is strong. Any improvement we find, however, vanished over the post-1984 period. Federal Reserve Bank of PhiladelphiaDo Phillips Curves Conditionally Help to Forecast Inflation? Michael Dotsey, Shigeru Fujita, and Tom Stark
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Mike Norman considers the following as important: FED, inflation, inflation forecast, Monetary Policy, NAIRU, Phillips Curve
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AbstractThis paper reexamines the forecasting ability of Phillips curves from both an uncon- ditional and conditional perspective by applying the method developed by Giacomini and White (2006). We find that forecasts from our Phillips curve models tend to be unconditionally inferior to those from our univariate forecasting models. Significantly, we also find conditional inferiority, with some exceptions. When we do find improvement, it is asymmetric – Phillips curve forecasts tend to be more accurate when the economy is weak and less accurate when the economy is strong. Any improvement we find, however, vanished over the post-1984 period. Federal Reserve Bank of PhiladelphiaDo Phillips Curves Conditionally Help to Forecast Inflation? Michael Dotsey, Shigeru Fujita, and Tom Stark
Topics:
Mike Norman considers the following as important: FED, inflation, inflation forecast, Monetary Policy, NAIRU, Phillips Curve
This could be interesting, too:
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AbstractFederal Reserve Bank of Philadelphia
This paper reexamines the forecasting ability of Phillips curves from both an uncon- ditional and conditional perspective by applying the method developed by Giacomini and White (2006). We find that forecasts from our Phillips curve models tend to be unconditionally inferior to those from our univariate forecasting models. Significantly, we also find conditional inferiority, with some exceptions. When we do find improvement, it is asymmetric – Phillips curve forecasts tend to be more accurate when the economy is weak and less accurate when the economy is strong. Any improvement we find, however, vanished over the post-1984 period.
Do Phillips Curves Conditionally Help to Forecast Inflation?
Michael Dotsey, Shigeru Fujita, and Tom Stark