Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/308098 
Authors: 
Year of Publication: 
2025
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 1/2025
Publisher: 
Bank of Finland, Helsinki
Abstract: 
This paper addresses the challenge of inflation forecasting by adopting a thick modeling approach that integrates forecasts from time- and frequency-domain models. Frequency-domain models excel at capturing long-term trends while also accounting for short-term fluctuations. Combining these models with traditional approaches leverages their complementary strengths, resulting in forecasts that consistently outperform individual methods, especially during periods of heightened inflation volatility. By pooling insights from diverse modeling frameworks, this study provides a robust and effective strategy for improving inflation forecasts across different horizons.
Subjects: 
inflation forecasting
forecast combination
wavelets
Haar filter
time-varying parameters
Phillips curve
JEL: 
C32
C53
E31
E37
E43
E44
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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