Forecasting Inflation in Argentina: A Comparison of Different Models

In general, central banks are concerned with keeping the inflation rate stable while also sustaining output close to an efficient level. Under “inflation targeting”, forecasts of the evolution of the general price level are an essential input for policy decisions and these are usually released in qu...

Descripción completa

Guardado en:
Detalles Bibliográficos
Autores principales: D'Amato, Garegnani Lorena, Gómez Aguirre, Maximiliano, Krysa, Ariel, Libonatti, Luis
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2018
Materias:
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/169117
Aporte de:
id I19-R120-10915-169117
record_format dspace
spelling I19-R120-10915-1691172024-09-02T20:02:05Z http://sedici.unlp.edu.ar/handle/10915/169117 Forecasting Inflation in Argentina: A Comparison of Different Models D'Amato, Garegnani Lorena Gómez Aguirre, Maximiliano Krysa, Ariel Libonatti, Luis 2018-11 2018 2024-08-27T13:27:04Z en Ciencias Económicas Inflation rate Forecasting Time series models Phillips curve In general, central banks are concerned with keeping the inflation rate stable while also sustaining output close to an efficient level. Under “inflation targeting”, forecasts of the evolution of the general price level are an essential input for policy decisions and these are usually released in quarterly “Inflation Reports”. The costs and benefits of transparency in monetary policy are widely debated, but the need for a central bank to incorporate forecasts of future inflation is broadly agreed. In short, forecasting inflation is of foremost importance to households, businesses, and policymakers. In 2016, the Central Bank of Argentina began announcing and inflation targeting scheme. In this context, providing the authorities with good estimates of relevant macroeconomic variables turns out to be crucial to make the pertinent corrections to reach the desired policy goals. This paper develops a group of models to forecast inflation in Argentina and conducts a comparison of their predictive ability at different horizons. Our variety of models includes: (i) univariate time series models, (ii) VARs, Bayesian VARs and Time-Varying Parameter VARs, and (iii) conventional New Keynesian Phillips Curves including one that incorporates money to evaluate its information content as a predictor of inflation. We compare the predictive performance of the different methods using the Giacomini-White test over the relevant horizons for monetary policy decisions. Facultad de Ciencias Económicas Objeto de conferencia Objeto de conferencia http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) application/pdf
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
Inflation rate
Forecasting
Time series models
Phillips curve
spellingShingle Ciencias Económicas
Inflation rate
Forecasting
Time series models
Phillips curve
D'Amato, Garegnani Lorena
Gómez Aguirre, Maximiliano
Krysa, Ariel
Libonatti, Luis
Forecasting Inflation in Argentina: A Comparison of Different Models
topic_facet Ciencias Económicas
Inflation rate
Forecasting
Time series models
Phillips curve
description In general, central banks are concerned with keeping the inflation rate stable while also sustaining output close to an efficient level. Under “inflation targeting”, forecasts of the evolution of the general price level are an essential input for policy decisions and these are usually released in quarterly “Inflation Reports”. The costs and benefits of transparency in monetary policy are widely debated, but the need for a central bank to incorporate forecasts of future inflation is broadly agreed. In short, forecasting inflation is of foremost importance to households, businesses, and policymakers. In 2016, the Central Bank of Argentina began announcing and inflation targeting scheme. In this context, providing the authorities with good estimates of relevant macroeconomic variables turns out to be crucial to make the pertinent corrections to reach the desired policy goals. This paper develops a group of models to forecast inflation in Argentina and conducts a comparison of their predictive ability at different horizons. Our variety of models includes: (i) univariate time series models, (ii) VARs, Bayesian VARs and Time-Varying Parameter VARs, and (iii) conventional New Keynesian Phillips Curves including one that incorporates money to evaluate its information content as a predictor of inflation. We compare the predictive performance of the different methods using the Giacomini-White test over the relevant horizons for monetary policy decisions.
format Objeto de conferencia
Objeto de conferencia
author D'Amato, Garegnani Lorena
Gómez Aguirre, Maximiliano
Krysa, Ariel
Libonatti, Luis
author_facet D'Amato, Garegnani Lorena
Gómez Aguirre, Maximiliano
Krysa, Ariel
Libonatti, Luis
author_sort D'Amato, Garegnani Lorena
title Forecasting Inflation in Argentina: A Comparison of Different Models
title_short Forecasting Inflation in Argentina: A Comparison of Different Models
title_full Forecasting Inflation in Argentina: A Comparison of Different Models
title_fullStr Forecasting Inflation in Argentina: A Comparison of Different Models
title_full_unstemmed Forecasting Inflation in Argentina: A Comparison of Different Models
title_sort forecasting inflation in argentina: a comparison of different models
publishDate 2018
url http://sedici.unlp.edu.ar/handle/10915/169117
work_keys_str_mv AT damatogaregnanilorena forecastinginflationinargentinaacomparisonofdifferentmodels
AT gomezaguirremaximiliano forecastinginflationinargentinaacomparisonofdifferentmodels
AT krysaariel forecastinginflationinargentinaacomparisonofdifferentmodels
AT libonattiluis forecastinginflationinargentinaacomparisonofdifferentmodels
_version_ 1809234748145401856