Classi ation for Intelligent
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Measuring core in‡ation in Italy
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,...
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