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Read excel file, clean it and build ARIMA model to predict Argentina's monetary base change

The excel file was downloaded from official BCRA website (https://www.bcra.gob.ar/)

About the notebook

The first task to solve was the multi-heads columns obtained by transforming the excel file into a data frame.

images/columnshead.jpg

After a bit of cleaning we got a dataframe with multiple columns indexes: DAILYCHANGE and DAILYSTOCK, both offering the same most important features but one shows the daily change and the other the total stock at a particular day. In addition DAILYCHANGE offers additional columns to show certain BCRA assets in more detail.

images/resultdata.jpg

ARIMA model

Our aim is to predict the feature held_by_public_(1) defined by: monetary circulation that is not in the possession of financial entities.

images/held_by_public.png

At first sight we can see that it is not stationary, then we must use differencing

images/shift1.png

where we apply Dicker-Fuller test obtaining a p value of 0.00046844795099990213

Then we get auto-correlation and partial-autocorrelation functions

images/partialauto.png

images/autocorr.png

Result

images/result.jpg

images/prediction.png

Showing some effectiveness during the first two weeks until approximately 04/15/2024, when it begins to converge towards the media.

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Read data from an excel file, clean it and build ARIMA model

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