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.


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