Working Paper

A simple adaptive measure of core inflation


Abstract: This paper proposes a new measure of core inflation and compares it with several existing measures. The new measure is adaptive and is designed to track sudden and persistent movements inflation, such as those arising from changes in monetary policy regimes. the adaptive measure is a superior predictor of (locally) mean reverting components of inflation, and appears to filter out transients more effectively than existing measures.

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Bibliographic Information

Provider: Federal Reserve Bank of San Francisco

Part of Series: Working Papers in Applied Economic Theory

Publication Date: 1998

Number: 98-06