Potential Product: Quantitative Analysis for the Czech Republic
In this paper we try to measure Non-Accelerating Inflation Product (NAIP) as a special form of the potential product and consequently the production gap, within a state-space framework. Our starting point is the Kitchian (/999) unobserved-component model (applied to the Canadian economy). We modify assumptions to reflect specific aspects of the small transitive Czech economy. We focus, in particular, a) on the specification of the output component, b) on the issue of whether to use net or consumer price inflation in the models, and c) on the integration of appropriate supply shocks in the expectation augmented Phillips curve. As the consequence we feel that the production gap state-space model can be quite useful information source for the formulation of monetary policy.
Volume (Year): 7 (2000)
Issue (Month): 12 ()
|Contact details of provider:|| Web page: http://ces.utia.cas.czEmail: |
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:czx:journl:v:7:y:2000:i:12:id:89. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jozef Barunik)
If references are entirely missing, you can add them using this form.