. Nevertheless, their forecasting properties are still barely explored. We fill this gap by comparing the quality of real … priors from a DSGE model. We show that the analyzed DSGE model is relatively successful in forecasting the US economy in the … accurate short-term forecasts for interest rates. Conditional on experts' now casts, however, the forecasting power of the DSGE …

To develop forecasting procedures with a forward-looking dynamic general equilibrium model, we built a small New … that information into the macro economic forecast.We propose a method of transforming the model in forecasting use in such … called for in the proposed forecasting procedures, which clearly is an advantage from point of view of transparency in …