Forecasting inflation in China

Jose R. Sanchez-Fung, Aaron Mehrotra

Research output: Working paperDiscussion paper

Abstract

This paper forecasts inflation in China over a 12-month horizon. The analysis runs 15 alternative models and finds that only those considering many predictors via a principal component display a better relative forecasting performance than the univariate benchmark.
Original languageEnglish
Place of PublicationHelsinki, Finland
PublisherBank of Finland
Number of pages17
ISBN (Print)9.79E+12
Publication statusPublished - Jan 2008
Externally publishedYes

Publication series

NameBOFIT Discussion Papers
PublisherBank of Finland
No.Feb-08
ISSN (Electronic)1456-5889

Keywords

  • China
  • Economics and econometrics
  • data-rich environment
  • inflation forecasting
  • principal components

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