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Forecasting Output and Inflation: The Role of Asset Prices
Forecasting Output Inflation Asset Prices
2014/3/18
Because asset prices are forward-looking, they constitute a class of potentially use-ful predictors of inflation and output growth. The premise that interest rates and asset prices contain usefu...
This paper investigates forecasts of US in#ation at the 12-month horizon. The starting point is the conventional unemployment rate Phillips curve, which is examined in a simulated out-of-sample foreca...