Economic scenarios can be highly complex due to factors such as monetary policy, geopolitical situations, bilateral trade agreements, and the state of the labor market. This complicated reality of economics often requires a simplified interpretation to understand the underlying patterns and dynamics within scenarios. Stylized facts serve as guiding stars in navigating vast amounts of […]
Author: scenariosbyai
A Few Examples of AI-Generated Economic Scenarios
One important aspect of economic scenario generators (ESG) is their ability to capture stylized facts observed in the historical data. Examples of stylized facts include but are not limited to, correlations between macroeconomic indicators, leading and lagging effects, level-dependent dynamic relationships, and even inverse relationships during stress periods. In this blog, we present a few […]
Correlation Between Macroeconomic Indicators
Economic indicators play a vital role in measuring the health of an economy. Some important macroeconomic indicators are the unemployment rate, consumer price index or CPI which measures inflation, gross domestic product or GDP, disposable income, short-term and long-term interest rates (such as Fed Funds rate and Treasury rates), home price index, and stock market […]