You should write a report which considers (i) the evolution of inflation and the rest of the underlying series in the work file and (ii) generate forecasts on inflation using non-structural, structural models, and a combination of the two. The items listed below should form the basis for your line of investigation (using E-Views) and report. Your report should include commentary and discussion interpreting your results. Where new variables have been created you should explain what has been done. Make sure your tables are self-explanatory. You should also provide a short conclusion summarizing your findings. [Note that a proper academic paper would include a review of relevant
literature – this is not required in the assignment]. You should pay some attention to the presentation and formatting of your report, which should be sufficient for an ‘internal’ report, but there is no need to go to extraordinary lengths to obtain publishable quality output. Graphs should have titles and be suitably labelled.
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