Central banks use macroeconomic models to help frame the issues that they face, to mold their ideas, and to guide them in their decisionmaking. While a wide range of models are available, economists ...

NOTE: F Statistic for Roy's Greatest Root is an upper bound. As Output 20.1.2 shows, the first canonical correlation is 0.7956, which would appear to be substantially larger than any of the ...

Model selection is a critical step in model development and brings with it a significant level of model risk. This analysis considers a real-world example and compares the forecasts and uncertainties ...