Working group minutes: refining forecast models
Central bank economists discuss challenges of tackling errors and integrating new model features
Participants in Central Banking’s latest interbank working group discussed the challenges they are facing in addressing forecast errors and upgrading key forecast models.
Economists from European central banks met virtually on April 24. All of their institutions were facing an uncertain outlook owing to the effects of US tariffs. This made forecasting particularly challenging, though high levels of uncertainty have been an issue for forecasters for several years.
As small open economies, the
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