It depends what and how you're typing.

It works for most of the traditional forms of typing (audio typing, typing from shorthand, etc) where you have a body of stuff that needs to be typed and not so well for stuff that programmers type where you're creating as you type.

You must check the text for errors when you've finished typing it so it makes sense to do all the error checking then. Some people find the cognitive focus switching of correcting errors as you type tricky.