This lesson requires a premium membership to access.
Premium membership includes unlimited access to all courses, quizzes, downloadable resources, and future content updates.
Most financial and economic times series are not stationary. Even when you adjust them for seasonal variations, they will exhibit trends, cycles, random walk and other non-stationary behavior. We can use a variety of techniques to make a non-stationary series stationary depending on the kind of non-stationary behavior present in the series. The two techniques we will learn are called differencing and logarithmic transformations.
