This paper explores the relevance of the Divisia monetary aggregate in Taiwan over the period January, 1985 through to June, 2016. We apply a block recursive structural Vector Autoregressive (VAR) approach that is adapted to a small open economy by adding the New Taiwan Dollar/US Dollar exchange...

This work applies state-of-the-art artificial intelligence forecasting methods to provide new evidence of the comparative performance of statistically weighted Divisia indices vis-à-vis their simple sum counterparts in a simple inflation forecasting experiment. We develop a new approach that...