One important feature of the Economic Scenario Generators (ESG) is the reproduction of stylized facts observed in the historical data. While it might be challenging to quantify all stylized facts, a simple comparison of correlations between the historical data and the generated scenarios can provide significant insights into the behaviour of economic variables. We use […]
Tag: Economic scenarios
A Few Economic Scenario Examples Generated by AI, 2024
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 […]