Error Correction Model and Inflation Forecast

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David Lowell Lovelady

Abstract

This study investigates the applicability of Granger-Engle cointegration and error correction for predicting inflation in Costa Rica. It is shown that these ideas, applied to a sliding regression against U.S. inflation, successfully forecast Costa Rica’s inflation, even through the rupture of 2008. 

Article Details

How to Cite
Lovelady, D. L. (2016). Error Correction Model and Inflation Forecast. Tecnología En Marcha Journal, 29(5), pág. 77–81. https://doi.org/10.18845/tm.v29i5.2587
Section
Artículo científico