Leading Indicators of Growth and Inflation in Turkey

Growth and inflation in Turkey have been volatile over the last two decades. It would, therefore, be useful to identify indicators that anticipate economic conditions and inflation. This paper investigates the predictive performance of economic indicators for inflation and real output growth in Turk...

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Bibliographic Details
Main Author: Leigh, Daniel
Other Authors: Rossi, Marco
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2002
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Leading Indicators of Growth and Inflation in Turkey  |c Daniel Leigh, Marco Rossi 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2002 
300 |a 26 pages 
651 4 |a Turkey 
653 |a Business cycles 
653 |a Price indexes 
653 |a Inflation 
653 |a Economywide Country Studies: Europe 
653 |a Cyclical indicators 
653 |a Economic Forecasting 
653 |a Deflation 
653 |a Consumer price indexes 
653 |a Economic forecasting 
653 |a Prices, Business Fluctuations, and Cycles: Forecasting and Simulation 
653 |a Economic Growth of Open Economies 
653 |a Forecasting 
653 |a Asset prices 
653 |a Price Level 
653 |a Cycles 
653 |a Forecasting and Other Model Applications 
653 |a Economic growth 
653 |a Prices 
653 |a Macroeconomics 
653 |a Business Fluctuations 
653 |a Central Banks and Their Policies 
653 |a Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) 
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520 |a Growth and inflation in Turkey have been volatile over the last two decades. It would, therefore, be useful to identify indicators that anticipate economic conditions and inflation. This paper investigates the predictive performance of economic indicators for inflation and real output growth in Turkey. We find that (i) the forecasting ability of individual indicators is unstable; but that (ii) a suitable combination of these unstable forecasts yields a forecast that reliably outperforms that generated by an autoregressive model. We then propose a two-stage combination forecast obtained by taking the median of the top five performing individual forecasts. This two-stage forecast reliably improves on autoregressive benchmarks and outperforms the combination forecast based on all the individual forecasts