New forecasting model revolutionizes inflation predictions in South Africa!
Inflation forecasts are crucial for making monetary decisions, especially in countries like South Africa. A new method called the DGSE model is used to predict inflation, even for variables not included in the model. By analyzing data from 1971 to 1999, the model accurately forecasts inflation rates from 2000 to 2011, outperforming other forecasting methods like AR(1).