Policymakers and researchers see inflation characterized by cyclical fluctuations driven by changes in resource … utilization and temporary shocks, around a trend influenced by inflation expectations. We study the in-sample inflation dynamics … and forecast inflation out-of-sample by analyzing a New Keynesian Phillips Curve (NKPC) in the frequency domain. In …

year ahead inflation. In addition, it turns out that the performance of MDS model forecasting is competitive in comparison … with other models found to be useful in the inflation forecasting literature. …