Why Should Central Banks Avoid the Use of the Underlying Inflation Indicator?
This paper assesses the usefulness of the commonly used underlying inflation indicator, in light of the criteria proposed in Marques et al. (2000). Empirical evidence for a group of six countries strongly suggets that the use of underlying inflation as an indicator of trend inflation should be avoided.
|Date of creation:||2000|
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- Luis J. Álvarez & María de los Llanos Matea, 1999.
"Underlying Inflation Measures in Spain,"
9911, Banco de España;Working Papers Homepage.
- Pedro Duarte Neves & Luís Morais Sarmento & Carlos Robalo Marques, 1999.
"Evaluating core inflation indicators,"
Economic Bulletin and Financial Stability Report Articles,
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- Alan S. Blinder, 1982. "The Anatomy of Double-Digit Inflation in the 1970s," NBER Chapters, in: Inflation: Causes and Effects, pages 261-282 National Bureau of Economic Research, Inc.
- Michael F. Bryan & Stephen G. Cecchetti, 1993.
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NBER Working Papers
4303, National Bureau of Economic Research, Inc.
- Michael F. Bryan & Stephen G. Cecchetti & Rodney L. Wiggins II, 1997.
"Efficient Inflation Estimation,"
NBER Working Papers
6183, National Bureau of Economic Research, Inc.
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