Friday, July 12, 2013

Predicting inflation again

I realized I had switched to GNP and GNP deflator data without having re-fit the data two posts ago. I also show the prediction in linear scale since the log scale did make it the fit with the wrong fit parameter look better than it is. I also mislabeled one axis as NGDP when it is NGNP. So here are pictures that are basically the ones from the last post, except with a new fit, a properly labeled axis (I keep using P as the deflator/price level because that is the variable in the original equations), and also shows a linear scale graph of the GNP deflator prediction:



1 comment:

  1. n.b. The red line is the constant information transfer index fit from the linked post.

    ReplyDelete

Comments are welcome. Please see the Moderation and comment policy.

Also, try to avoid the use of dollar signs as they interfere with my setup of mathjax. I left it set up that way because I think this is funny for an economics blog. You can use € or £ instead.