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An Alternative Core Inflation Measure

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Author Info
Michael Pedersen

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Abstract

We combine the ideas of the trimmed mean and the Edgeworth index to construct an alternative measure of core inflation named 'Trim of Most Volatile Components (TMVC)'. At each point of time, this measure trims away the components of the price index that have been most volatile in the recent past. Statistical tests indicate that neither the trimmed mean nor the Edgeworth index dominates the TMVC in terms of tracking trend inflation. Copyright 2009 The Author. Journal Compilation 2009 Verein für Socialpolitik and Blackwell Publishing Ltd. 2009.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0475.2008.00453.x
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Publisher Info
Article provided by Blackwell Publishing in its journal German Economic Review.

Volume (Year): 10 (2009)
Issue (Month): (05)
Pages: 139-164
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Handle: RePEc:bla:germec:v:10:y:2009:i::p:139-164

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This page was last updated on 2009-11-22.

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