Colombian paper finds flaws in inflation forecasting


A working paper, published by the Central Bank of Colombia on February 6, finds that many central banks could improve the accuracy of their short-term inflation forecasts if they incorporate a power transformation into their inflation models.

Héctor Zárate and Angélica Rengifo incorporate CPI data from 19 inflation-targeting countries into a model that uses a Box-Cox power transformation to stabilise the variance of the data. They find this improves the accuracy of inflation forecasts, but the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: