Friday, September 29, 2017

Checking in on an inflation forecast

I made a forecast of PCE inflation using the dynamic information equilibrium model described in this post at the beginning of the year, and so far the model is doing well — new monthly core PCE data came out this morning:


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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.