Hi,
I currently have a quarterly model of inflation thus the forecasts i produce from this model are one-step ahead forecasts e.g. QoQ changes
I am unsure how I would produce four-step ahead forecasts e.g. 1yr ahead forecasts for inflation.
The model is as such:
Inflation=Constant+Four quarters of lagged inflation+money growth+error term
Where the 4Q lagged inflation is essentialy a AR(4) model
n-step ahead forecasts
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