Scott Sumner asked (in comments on his post on AD) if the information transfer model (ITM) was better at predicting inflation (gray line in the graph above) than TIPS spreads (the difference between inflation indexed treasuries and ordinary treasuries of the same maturity, red jagged line in the graph above).
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Better than TIPS
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Scott Sumner asked (in comments on his post on AD) if the information transfer model (ITM) was better at predicting inflation (gray line in the graph above) than TIPS spreads (the difference between inflation indexed treasuries and ordinary treasuries of the same maturity, red jagged line in the graph above).