Bank of England Experiment Training Neural Net to Predict CPI Inflation

.@bankofengland results of training a 4-layer #DeepLearning #NeuralNetwork 2 predict UK #CPI Inflation on pre-2005 data: network predicts better than #VAR until #GFC hits, then predicts lower CPI; analysis traces this 2 network reliance on #PrivateDebt & #GDHI; v #BankUnderground pic.twitter.com/J3VJO88LBz

— Satyen Baindur (@Satyen_Baindur) November 13, 2017