Macroeconomic Forecasting with Large Language Models

Excerpt

arXiv:2407.00890v5 Announce Type: replace-cross Abstract: This paper presents a comparative analysis evaluating the accuracy of Large Language Models (LLMs) against traditional macro time series forecasting approaches. In recent times, LLMs have surged in popularity for forecasting due to their ability to capture intricate patterns in data and quickly adapt across very different domains. However, their effectiveness in forecasting macroeconomic time series data compared to conventional methods r