Measuring core in‡ation in Italy
نویسندگان
چکیده
In this paper the long-run trend in CPI in‡ation (core in‡ation) for Italy is estimated over the 1962-1997 period within the framework of a multivariate common trends model. In this framework core in‡ation is directly linked to money and wage growth and interpreted as the long-run forecast of in‡ation. This measure displays several desirable properties: lower variability than observed in‡ation, forecasting power, robustness to the estimation sample and economic interpretability. J.E.L. classi...cation: C32, E31, E52
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