Rosa, Carlo - Center for Operations Research and Econometrics … - 2009
-type variables, such as inflation and output gap, is fairly low both insampleand out-of-sample, and is comparable to the performance … of the random walk model. Instead byusing broader information sets that include measures of core inflation, exchange …’s actions compared
to headline inflation. Third, the inclusion of the euro exchange rate with the U.S. dollar and monetary
13 …