encouraging. In a pseudo out-of-sample exercise, our approach beats relevant benchmarks for forecasting CPI inflation and an …

product, which in turn are used as an input in the forecasting process. Such forecasts reflect and incorporate the flow of … in a synchronous way. The forecasting power of the dynamic factor model is compared with those of several other models …

forecasting together with cross-equation accounting identities. A pseudo real-time forecasting exercise indicates that the model … outperforms various benchmarks, such as quarterly time series models and bridge equations in forecasting growth in quarterly GDP …