A Policy-sensible Core-inflation Measure for the Euro Area |
Contents
Although the concept of core inflation is apparently well defined and intuitively | 3 |
A policy effectivenessbased approach | 9 |
Empirical results | 15 |
Common terms and phrases
aggregate demand aggregate inflation alternative core inflation appraise the performance approach Banca d'Italia based core inflation Batini Bryan and Cecchetti Cecchetti 1994 Central Bank coefficients compute core inflation indicators core inflation measures D. J. MARCHETTI Diewert distribution of price Edgeworth empirical application energy and food euro area European Central Bank Excl explicitly Figure food and energy Food Energy forecasting ability framework future inflation headline inflation Impulse Responses lagged long-run core inflation loss function loss minimisation problem measure of core Model Based 3.18 Model based core model-dependent monetary policy rule monetary policy-maker Nominal Interes rate nominal interest rate o(inflation optimal rule output gap Overall Inflation Response paper parameters policy-maker's popular core inflation price changes price dynamics propose react reaction function Real Interest rate Section sectoral inflation rates September 2006 sub-components Taylor-type rule underlying inflation indicators variables volatile components weight