How can I make non stationary data into stationary?

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sbkb
Posts: 4
Joined: Sat Aug 01, 2015 9:09 am

How can I make non stationary data into stationary?

Postby sbkb » Sat Aug 01, 2015 9:23 am

i have this regression inflation c nominal effective exchange rate + interest rate + industrial production.

When i tested this series for stationarity i get a result that all are integrated of (I)1, they are stationary in their first differences.

My question is what should i do, how to fix this issue?
Should i include all variables in logs (ex. log(inflation) c log(nominal effective exchange rate) + log(interest rate) + log(industrial production), or should i do this: d(inflation) c d(nominal effective exchange rate) + d(interest rate) + d(industrial production) including them like first differences?

Is (LOG) going to fix the non stationarity of data?

sbkb
Posts: 4
Joined: Sat Aug 01, 2015 9:09 am

Re: How can I make non stationary data into stationary?

Postby sbkb » Sun Aug 02, 2015 6:15 am

Can somebody please answer me?


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