It is well known that when we have to do with possibly chaotic time series, it needs to reconstruct a pseudo state space. In this paper it has been studied, via simulations, a possible multivariate reconstruction and its effects on the one step prediction.

This paper tests the monetary approach to Zimbabwe's balance of payments during the period 1980 to 1991. It examines whether excess money supply played a role as a disturbance using multivariate cointegration and error-correction modelling.