Fourier Transformation on Model Fitting for Pakistan Inflation Rate

Anam Iqbal, Basheer Ahmad, Kanwal Iqbal, Asad Ali

Abstract


Inflation is one of the serious economic indicators in Pakistan. Inflation can be crawling, walking, running, hyper and stagflation according to nature. To model monthly inflation rate in Pakistan periodogram analysis and frequency domain analysis which is also known as Fourier analysis or spectral analysis is used. After analyzing the data, inflation cycle length is observed and appropriate Fourier series models are fitted to the data. Monthly inflation rate is also analyzed by Auto Regressive Integrated Moving average (ARIMA). Further, models are compared and it is found that Fourier series models are more suitable to forecast inflation rate of Pakistan.


Full Text:

PDF


DOI: https://doi.org/10.5296/ber.v8i1.12052

Refbacks

  • There are currently no refbacks.


Business and Economic Research  ISSN 2162-4860

Copyright © Macrothink Institute

To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.