Core inflation in the Euro area

Using a common trends model, a forward-looking 'core' inflation measure is estimated for the Euro area based on long-run relations among major macroeconomic variables, bearing the interpretation of long-run inflation forecast. The proposed measure may be particularly suitable for the '...

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Bibliographic Details
Published inApplied economics letters Vol. 9; no. 6; pp. 353 - 357
Main Authors Bagliano, Fabio C., Golinelli, Roberto, Morana, Claudio
Format Journal Article
LanguageEnglish
Published Taylor & Francis Group 01.05.2002
Taylor and Francis Journals
SeriesApplied Economics Letters
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Summary:Using a common trends model, a forward-looking 'core' inflation measure is estimated for the Euro area based on long-run relations among major macroeconomic variables, bearing the interpretation of long-run inflation forecast. The proposed measure may be particularly suitable for the 'two-pillar' monetary policy strategy of the ECB which focuses on medium-term inflation prospects.
ISSN:1350-4851
1466-4291
DOI:10.1080/13504850110086035