Forecast Errors and Uncertainty Shocks /

Macroeconomic forecasts are persistently too optimistic. This paper finds that common factors related to general uncertainty about U.S. macrofinancial prospects and global demand drive this overoptimism. These common factors matter most for advanced economies and G- 20 countries. The results suggest...

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מידע ביבליוגרפי
מחבר ראשי: Nowak, Sylwia
מחברים אחרים: Chatterjee, Pratiti
פורמט: כתב-עת
שפה:English
יצא לאור: Washington, D.C. : International Monetary Fund, 2016.
סדרה:IMF Working Papers; Working Paper ; No. 2016/228
נושאים:
גישה מקוונת:Full text available on IMF
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520 3 |a Macroeconomic forecasts are persistently too optimistic. This paper finds that common factors related to general uncertainty about U.S. macrofinancial prospects and global demand drive this overoptimism. These common factors matter most for advanced economies and G- 20 countries. The results suggest that an increase in uncertainty-driven overoptimism has dampening effects on next-year real GDP growth rates. This implies that incorporating the common structure governing forecast errors across countries can help improve subsequent forecasts. 
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700 1 |a Chatterjee, Pratiti. 
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