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Full-Text Articles in Asian Studies
Forecasting Inflation In Asian Economies, Freddy Chian Fatt Liew
Forecasting Inflation In Asian Economies, Freddy Chian Fatt Liew
Dissertations and Theses Collection (Open Access)
This paper surveys the recent literature on inflation forecasting and conducts an extensive empirical analysis on forecasting inflation in Singapore, Japan, South Korea and Hong Kong paying particular attention to whether the inflation-markup theory can help to forecast inflation. We first review the relative performance of different predictors in forecasting h-quarter ahead inflation using single equations. These models include the autoregressive model and bivariate Philips curve models. The predictors are selected from business activity, financial activity, trade activity, labour market, interest rate market, money market, exchange rate market and global commodity market variables. We then evaluate a vector autoregressive inflation-markup …