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Lax monetary policy in the United States has been pointed out as one of the responsible factors behind the recent global crisis. Similar loose monetary conditions also prevailed in many European countries before the crisis and were argued to be among the accommodating factors behind the run-up...
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to forecasting area-wide industrial production. To this end, we use various tests that are designed to compare competing … forecast models. In addition to the standard Diebold-Mariano test, we employ tests that account for specific problems typically … encountered in forecast exercises. Specifically, we pay attention to nested model structures, we alleviate the problem of data …
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We compare sparse and dense representations of predictive models in macroeconomics, microeconomics, and finance. To deal with a large number of possible predictors, we specify a prior that allows for both variable selection and shrinkage. The posterior distribution does not typically concentrate...
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Reform of financial regulation is a priority on the international agenda. At the call of the Group of Twenty Finance Ministers and Central Bank Governors (G-20), a number of new international standards have been issued, most notably Basel III. As a member of the G-20, the Financial Stability...
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