. 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 …

We run a real exchange rate forecasting "horse race", which highlights that two principles hold. First, forecasts … real exchange rate forecasting. However, it fails to forecast nominal exchange rates better than the random walk. We find …

reversion and assume that relative prices are unchanged. Direct forecasting or panel data techniques are better than the random …

better quality than PPP. The MB approach has the most appealing economic interpretation, but performs poorly in forecasting …