equilibrium indeterminacy for quantitative forecasting through standard reduced form forecast models. Exploiting U.S. data on both … of indeterminacy. It is argued that forecasting under indeterminacy with e.g. unrestricted VAR models entails …-to-one relationship between indeterminacy and superior forecastability, even when sunspot shocks play no role in generating the data …

This note warns against the use of noncausal VARs as a reliable test for indeterminacy. By means of a simple example …