Abstract

LOVELADY, David Lowell. Error Correction Model and Inflation Forecast. Tecnología en Marcha [online]. 2016, vol.29, suppl.2, pp.78-82. ISSN 0379-3982.  http://dx.doi.org/10.18845/tm.v29i5.2587.

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.

Keywords : Granger-Engle; inflation forecasting; regression; error correction.

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