Quah, Danny and Vahey, Shaun P. (1995) Measuring core inflation. The Economic Journal, 105 (432). pp. 1130-1144. ISSN 0013-0133
Full text not available from this repository.Abstract
In this paper, we argue that measured (RPI) inflation is conceptually mismatched with core inflation: the difference is more than just ‘measurement error’. We propose a technique for measuring core inflation, based on an explicit long-run economic hypothesis. Core inflation is defined as that component of measured inflation that has no (medium-to) long-run impact on real output - a notion that is consistent with the vertical long-run Phillips curve interpretation of the comovements in inflation and output. We construct a measure of core inflation by placing dynamic restrictions on a vector autoregression (VAR) system.
| Item Type: | Article |
|---|---|
| Additional Information: | © 1995 Royal Economic Society |
| Divisions: | Economics IGA: LSE IDEAS LSE Human Rights |
| Subjects: | H Social Sciences > HB Economic Theory |
| JEL classification: | E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level; Inflation; Deflation |
| Date Deposited: | 27 Apr 2007 |
| Last Modified: | 14 Feb 2024 00:08 |
| URI: | http://eprints.lse.ac.uk/id/eprint/1141 |
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