SAS for Finance

Inflation forecasting

Inflation is a measure that affects all aspects of our life, including earnings and spending power. It is produced by central banks, or some other nominated government institution, and is used as a benchmark to assess the health of the economy and set expectations on the level of future earnings to ensure sufficient returns on investment. Various levels of inflation can highlight different problems in the economy. Japan can be considered as a classic example of experiencing deflation, where a government tries to increase spending through various measures to get the inflation rate higher. Run-away inflation in Zimbabwe and Venezuela has caused havoc for its residents, on the other hand, while the Eurozone is struggling ...