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Forecasting money supply and evaluating alternative forecasting performance using Barbadian data

  • Central Bank Of Barbados
  • 22 Jul,1995
  • 1
  • Working Papers,
  • Print

This paper is concerned with applying different forecasting techniques to the money supply of the Barbadian economy and evaluating the efficiency/performance of those techniques. Perhaps, one of the major ways in which this study differs from past studies is in the utilization of cointegration theory and error corrections models (ECMs) to specified a dynamic formulation of the money demand function. Section 1 presents the exponential smoothing technique, Section 2 the ARIMA technique, Section 3 compares and evaluates the univariant procedures, Section 4 develops a regression money demand function, and Section 5 compares the regression with the univariant forecast models and concludes.

WP1995-23.