Time series model is top tool for forecasting and research
Use of machine learning models for research purposes surges year on year
Most central banks use time series modelling for forecasting and research. Semi-structural approaches, on the other hand, are preferred for scenario analysis, the Economics Benchmarks 2023 finds.
Among the suite of models listed for selection, 87.5% of 32 respondents say they utilise time series models for both forecasting and research. Of those mentioning scenario analysis, 81.3% say they apply semi-structural models.
Machine learning/artificial intelligence (ML/AI) and agent-based models
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