Lenza, Michele; Warmedinger, Thomas - In: Journal of Economics and Statistics (Jahrbuecher fuer … 231 (2011) 1, pp. 50-62
This paper develops a factor model for forecasting inflation in the euro area. The model can handle variables with … walk forecasts, a hard to beat benchmark for euro area inflation forecasts in recent years, at horizons of and beyond nine … current and future euro area inflation from new data releases. …