An Alternative Measure of Core Inflation
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, which have been most volatile in the past. TMVC tracks trend inflation better than other core inflation measures in the euro zone, but in the US the evidence is weaker.
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- Juan-Luis Vega & Mark A. Wynne, 2002.
"A first assessment of some measures of core inflation for the euro area,"
0205, Federal Reserve Bank of Dallas.
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- Michael Pedersen, 2006.
"An Alternative Measure of Core Inflation,"
Working Papers Central Bank of Chile
366, Central Bank of Chile.
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NBER Working Papers
6183, National Bureau of Economic Research, Inc.
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in: Monetary Policy, pages 195-219
National Bureau of Economic Research, Inc.
- Smith, Julie K, 2004. "Weighted Median Inflation: Is This Core Inflation?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(2), pages 253-63, April.
- Mark A. Wynne, 2008.
"Core inflation: a review of some conceptual issues,"
Federal Reserve Bank of St. Louis, issue May, pages 205-228.
- Wynne, Mark A., 1999. "Core inflation: a review of some conceptual issues," Working Paper Series 0005, European Central Bank.
- Mark A. Wynne, 1999. "Core inflation: a review of some conceptual issues," Working Papers 9903, Federal Reserve Bank of Dallas.
- Hogan, Seamus & Marianne Johnson & Thérèse Laflèche, 2001. "Core Inflation," Technical Reports 89, Bank of Canada.
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