Measuring Core Inflation in Italy
Giornale degli Economisti, Vol. 58, pp. 301-28, 1999
Posted: 1 Nov 2005
n this paper the long-run trend in CPI inflation (core inflation) for Italy is estimated over the 1962-1997 period. The estimates obtained with the Quah and Vahey (1995) bivariate structural VAR methodology and with a multivariate common trends model are compared. The results show the potential advantages for monetary policy of using a more informative common trends model to estimate the core inflation process.
Keywords: core inflation, common trends model, monetary policy, Italy
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