Estimation of the Business Cycles - Selected Methodological Problems of the Hodrick-Prescott Filter Application
The aim of this article is to highlight a number of problems due to a rather „mechanical“ application of the Hodrick-Prescott Filter and its possible implication for the monetary policy decision-making process. The author concludes that HP filter is not able to estimate the potential output, however it could be used as the efficient tool in monetary policy decision making process and its stabilizing function.
|Date of creation:||01 Sep 2009|
|Date of revision:|
|Publication status:||Published in Polish Journal of Environmental Studies 5B.18(2009): pp. 227-231|
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Web page: http://mpra.ub.uni-muenchen.de
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