This paper explores the application of Hidden Markov Models (HMM) and Long Short-Term Memory (LSTM) neural networks for economic forecasting, focusing on predicting CPI inflation rates. The study explores a new approach that integrates HMM-derived hidden states and means as additional features for LSTM modeling, aiming to enhance the interpretability and predictive performance of the models. The research begins with data collection and preprocessing, followed by the implementation of the HMM to identify hidden states representing distinct economic conditions. Subsequently, LSTM models are trained using the original and augmented data sets, allowing for comparative analysis and evaluation. The results demonstrate that incorporating HMM-derived data improves the predictive accuracy of LSTM models, particularly in capturing complex temporal patterns and mitigating the impact of volatile economic conditions. Additionally, the paper discusses the implementation of Integrated Gradients for model interpretability and provides insights into the economic dynamics reflected in the forecasting outcomes.

Inflation remains a persistent challenge for many African countries. This research investigates the critical role of machine learning (ML) in understanding and managing inflation in Ghana, emphasizing its significance for the country's economic stability and growth. Utilizing a comprehensive dataset spanning from 2010 to 2022, the study aims to employ advanced ML models, particularly those adept in time series forecasting, to predict future inflation trends. The methodology is designed to provide accurate and reliable inflation forecasts, offering valuable insights for policymakers and advocating for a shift towards data-driven approaches in economic decision-making. This study aims to significantly advance the academic field of economic analysis by applying machine learning (ML) and offering practical guidance for integrating advanced technological tools into economic governance, ultimately demonstrating ML's potential to enhance Ghana's economic resilience and support sustainable development through effective inflation management.

Hunger crises are critical global issues affecting millions, particularly in low-income and developing countries. This research investigates how machine learning can be utilized to predict and inform decisions regarding famine and hunger crises. By leveraging a diverse set of variables (natural, economic, and conflict-related), three machine learning models (Linear Regression, XGBoost, and RandomForestRegressor) were employed to predict food consumption scores, a key indicator of household nutrition. The RandomForestRegressor emerged as the most accurate model, with an average prediction error of 10.6%, though accuracy varied significantly across countries, ranging from 2% to over 30%. Notably, economic indicators were consistently the most significant predictors of average household nutrition, while no single feature dominated across all regions, underscoring the necessity for comprehensive data collection and tailored, country-specific models. These findings highlight the potential of machine learning, particularly Random Forests, to enhance famine prediction, suggesting that continued research and improved data gathering are essential for more effective global hunger forecasting.

This study investigates whether OpenAI's ChatGPT-3.5 and ChatGPT-4 can forecast future events. To evaluate the accuracy of the predictions, we take advantage of the fact that the training data at the time of our experiments (mid 2023) stopped at September 2021, and ask about events that happened in 2022. We employed two prompting strategies: direct prediction and what we call future narratives which ask ChatGPT to tell fictional stories set in the future with characters retelling events that happened in the past, but after ChatGPT's training data had been collected. We prompted ChatGPT to engage in storytelling, particularly within economic contexts. After analyzing 100 trials, we find that future narrative prompts significantly enhanced ChatGPT-4's forecasting accuracy. This was especially evident in its predictions of major Academy Award winners as well as economic trends, the latter inferred from scenarios where the model impersonated public figures like the Federal Reserve Chair, Jerome Powell. As a falsification exercise, we repeated our experiments in May 2024 at which time the models included more recent training data. ChatGPT-4's accuracy significantly improved when the training window included the events being prompted for, achieving 100% accuracy in many instances. The poorer accuracy for events outside of the training window suggests that in the 2023 prediction experiments, ChatGPT-4 was forming predictions based solely on its training data. Narrative prompting also consistently outperformed direct prompting. These findings indicate that narrative prompts leverage the models' capacity for hallucinatory narrative construction, facilitating more effective data synthesis and extrapolation than straightforward predictions. Our research reveals new aspects of LLMs' predictive capabilities and suggests potential future applications in analytical contexts.

Timely monetary policy decision-making requires timely core inflation measures. We create a new core inflation series that is explicitly designed to succeed at that goal. Precisely, we introduce the Assemblage Regression, a generalized nonnegative ridge regression problem that optimizes the price index's subcomponent weights such that the aggregate is maximally predictive of future headline inflation. Ordering subcomponents according to their rank in each period switches the algorithm to be learning supervised trimmed inflation - or, put differently, the maximally forward-looking summary statistic of the realized price changes distribution. In an extensive out-of-sample forecasting experiment for the US and the euro area, we find substantial improvements for signaling medium-term inflation developments in both the pre- and post-Covid years. Those coming from the supervised trimmed version are particularly striking, and are attributable to a highly asymmetric trimming which contrasts with conventional indicators. We also find that this metric was indicating first upward pressures on inflation as early as mid-2020 and quickly captured the turning point in 2022. We also consider extensions, like assembling inflation from geographical regions, trimmed temporal aggregation, and building core measures specialized for either upside or downside inflation risks.

Robots in 3D spaces with more than six degrees of freedom are redundant. A redundant robot allows multiple configurations of the robot for the given target point in the dexterous workspace. The presence of multiple solutions helps in resolving constraints in workspace such as object avoidance and energy minimization during trajectory planning. Inverse kinematics solutions of such redundant robotics are intricate. The present study involves comparison of different metaheuristic optimization algorithms (MOA), which have a positional error, and identify a MOA for high precision of positioning of the end effector of the robot. This study applies recent MOA for the inverse kinematics of hyper redundant nine degrees of freedom (DOF) robot arm by using forward kinematics of the Denavit-Hartenberg (DH) parameters and compares the performance of these algorithms. The comparative study shows Bald Eagle Search (BES) algorithm has better performance over other metaheuristic algorithms. BES algorithm outperforms the other MOA in achieving the desired position with very high precision and least positional error for a 9-DOF robot arm.

The current knowledge system of macroeconomics is built on interactions among a small number of variables, since traditional macroeconomic models can mostly handle a handful of inputs. Recent work using big data suggests that a much larger number of variables are active in driving the dynamics of the aggregate economy. In this paper, we introduce a knowledge graph (KG) that consists of not only linkages between traditional economic variables but also new alternative big data variables. We extract these new variables and the linkages by applying advanced natural language processing (NLP) tools on the massive textual data of academic literature and research reports. As one example of the potential applications, we use it as the prior knowledge to select variables for economic forecasting models in macroeconomics. Compared to statistical variable selection methods, KG-based methods achieve significantly higher forecasting accuracy, especially for long run forecasts.

Welcome to California Inc., the weekly newsletter of the L.A. Times Business Section. It's earnings season, so all eyes are on corporate balance sheets. Last week, big banks reported solid numbers, with JPMorgan Chase, Citigroup and Wells Fargo each posting profit and sales numbers that exceeded analyst expectations. However, Wells said its third-quarter profit slipped 3% from a year earlier as the company tries to recover from that bogus-accounts scandal. Checking out China: Wang Jianlin, chairman of China's Dalian Wanda Group, will speak Monday night at LACMA on "Navigating Business in China."

We study a novel task of numerical relation extraction with the goal of extracting relations where one of the arguments is a number or a quantity ( e.g., atomic_number(Aluminium, 13), inflation_rate(India, 10.9%)). This task presents peculiar challenges not found in standard IE, such as the difficulty of matching numbers in distant supervision and the importance of units. We design two extraction systems that require minimal human supervision per relation: (1) NumberRule, a rule based extractor, and (2) NumberTron, a probabilistic graphical model. We find that both systems dramatically outperform MultiR, a state-of-the-art non-numerical IE model, obtaining up to 25 points F-score improvement.