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2010

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Kyayima Muteba

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A Contribution To Simple Recursive Forecasting Model, Kyayima Muteba Nov 2010

A Contribution To Simple Recursive Forecasting Model, Kyayima Muteba

Kyayima Muteba

We forecast inflation as a learning (linear) process with optimal learning gain (best forecast) obtained by minimizing the Mean Square Error (MSE) as a function of the constant gain. Our results show that the forecast fits well the true observations and captures well theirs fluctuations