Conditional forecasts using monthly data

[Houston]

I am trying to do conditional forecasts of real oil prices in 2016 based on an estimated SVAR model (Lutz Kilian paper). The examples in the rats textbook and the forum are all about quarterly data. However, I use monthly data for my model. I know that, when setting up constraints, it is good to keep them as loose as possible. So, when using monthly data, what is a good way to set future constraints? Does it work if setting more than one monthly constrains during a forecast year?

[TomDoan]

Obviously it will depend somewhat on what type of constraints you're trying to do, but probably something like every six months wouldn't be likely to overconstrain.

[Houston]

Thanks, Tom