Data-rich DSGE model outperforms traditional forecasting methods for global economies.
The study looked at how adding a lot of economic data to a model can improve predictions about the Canadian economy. They used a specific type of model and compared its forecasting ability to other models. The results showed that the model with more data performed better than the traditional model. It was even as good as or better than the Bank of Canada's predictions for things like GDP and exchange rates. This means that using more data can help make more accurate predictions about the economy.