Bayesian combination for inflation forecasts : the effects of a prior based on central banks' estimates

Borradores de Economia
Número: 
853
Publicado: 
Clasificación JEL: 
C22, C53, C11, E31
Palabras clave: 
Bayesian Shrinkage, Inflation Forecast Combination, Internal Forecasts, Rolling window estimation

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Typically, central banks use a variety of individual models (or a combination of models) when forecasting inflation rates. Most of these require excessive amounts of data, time, and computational power; all of which are scarce when monetary authorities me