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, and
their average growth rate. As for the theory of CQM, refer to "Combinations of High
and Low Frequency Data in Macroeconometrics Models (CQM_Theory.pdf
)" by Prof.
L.R.Klein and Mr. E.Sojo.