For much of the last four decades, leading analysts have used large Keynesian macroeconomic models to prepare macroeconomic forecasts. More recently, VAR models have become a popular alternative. Despite their usefulness in preparing unconditional forecasts, VAR models are unsuitable for policy...

Thirty years ago it appeared that the best strategy for improving economic forecasts was to build bigger, more detailed models. As the costs of computing plummeted, considerable detail was added to models and more elaborate statistical techniques became feasible.

Price Indexes allow one to compare the average levels of prices at different times. Despite their widespread use, price indexes do not answer all questions as well as analysts might wish. Macroeconomic Price Indexes is a guide for users of major price indexes. It provides details about several...