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Forecasting for monetary policy

Laura Coroneo

arXiv 13 Jan 2025 · Econometrics · publishedInternational Journal of Forecasting (2025) · 1 citations (OpenAlex)

arXiv:2501.07386 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper discusses three key themes in forecasting for monetary policy highlighted in the Bernanke (2024) review: the challenges in economic forecasting, the conditional nature of central bank forecasts, and the importance of forecast evaluation. In addition, a formal evaluation of the Bank of England's inflation forecasts indicates that, despite the large forecast errors in recent years, they were still accurate relative to common benchmarks.

Citation extraction

86
references
118
in-text mentions
86
distinct cited
4
self-citations
6,516
main-text words

appendix boundary found by none_found · 100% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Bernanke, B (2024) Forecasting for monetary policy making and communication at the Bank of England: a review1.000127100%
2Diebold, Francis X and Mariano, Roberto S (1995) Comparing Predictive Accuracy0.87482100%
3Coroneo, Laura and Iacone, Fabrizio (2020) Comparing predictive accuracy in small samples using fixed-smoothing asymptotics self0.87452100%
4Kanngiesser, Derrick and Willems, Tim (2024) Forecast accuracy and efficiency at the Bank of England – and how errors can be leveraged to do better0.73732100%
5Alessi, Lucia and Ghysels, Eric and Onorante, Luca and Peach, Richar… (2014) Central bank macroeconomic forecasting during the global financial crisis: The European Central Bank and Federal Reserve Bank of…0.64422100%
6Coroneo, Laura and Iacone, Fabrizio and Profumo, Fabio (2024) Survey density forecast comparison in small samples self0.64422100%
7Coroneo, Laura and Iacone, Fabrizio (2024) Testing for equal predictive accuracy with strong dependence self0.51121100%
8Groen, Jan JJ and Paap, Richard and Ravazzolo, Francesco (2013) Real-time inflation forecasting in a changing world0.51121100%
9Guisinger, Amy Y and McCracken, Michael W and Owyang, Michael T (2024) Reconsidering the Fed's Inflation Forecasting Advantage0.51121100%
10Sims, Christopher A (2002) The role of models and probabilities in the monetary policy process0.51121100%

Showing the top 10 of 86 scored citations.