TVP-VAR provides the best forecasting performance for the series of GDP and net worth of financial intermediaries for all … steps-ahead, while the DSGE model outperforms the other specifications in forecasting inflation and the federal funds rate …

equilibrium (DSGE) models, estimated using Bayesian techniques, can become an additional useful tool in the forecasting kit of … central banks. First, we show that the forecasting performance of such models compares well with a-theoretical vector …