Forecasting the world economy is a di¢ cult task given the complex interre-lationships within and across countries …, …rst, at ranking various forecasting methods in terms offorecast accuracy and, second, at checking whether methods … forecasting di-rectly aggregate variables (direct approaches) outperform methods based onthe aggregation of country …

to the cross-sectional dimension, the forecasting performance of small monetary VARs can be improved by adding additional …

subjective choices in the setting of the prior. Moreover, it performs very well both in terms of out-of-sample forecasting …