Research Discussion Paper – RDP 9704 Financial Aggregates as Conditioning Information for Australian Output and Inflation

Contents

• Introduction
• Background
• The In-sample Prediction Exercise
• The Single-equation Methodology
• Conclusions
• Appendix A: Data
• Appendix B: Technical Description of the Conditional Forecasting Exercise
• References

We thank Will Roberds and Chuck Whiteman for the RATS program for the prediction tests. We thank Gordon de Brouwer, Guy Debelle, Glenn Stevens, David Gruen, Phil Lowe, Troy Swann and Jenny Wilkinson for useful comments on an earlier draft. The opinions expressed, and any remaining errors are ours, and should not be attributed to the Reserve Bank of Australia.