Important of Current Quarter Model in IT department:


I have give summary about CQM in IT which helping in financial markets.At the University of Pennsylvania, in cooperation with the WEFA Group, Prof. Lawrence R. Klein of University of Pennsylvania has established statistical relationships between some 75 monthly economic and financial indicators and the main entries in the quarterly national income and product accounts (NIPA). This is so-called Current Quarter Model (CQM). The CQM is a purely econometric system with no personal data adjustment. Whenever high frequency indicators are available, partial information on the United States economy can be updated, revising the current (and next) quarter forecasts. Since there is no personal adjustment in the CQM, the CQM forecasts on a forward rolling basis are able to tell the continuous changes in the economy. The graphs in CQM Performance show the history of how CQM was forecasting real GDP growth rates from both expenditure and both income sides, their average growth rate. As for the theory of CQM, refer to "Combinations of High and Low Frequency Data in Macro econometrics Models.