Fast micro and slow macro: can aggregation explain the persistence of inflation?

An aggregation exercise is proposed that aims at investigating whether the fast average adjustment of the disaggregate inflation series of the euro area CPI translates into the slow adjustment of euro area aggregate inflation. We first estimate a dynamic factor model for 404 inflation sub-indices of the euro area CPI. This allows to decompose the dynamics of inflation sub-indices in two parts: one due to a common

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Year of publication:	2007
Authors:	Altissimo, Filippo ; Mojon, Benoît ; Zaffaroni, Paolo
Institutions:	Federal Reserve Bank of Chicago
Subject:	Inflation (Finance) \| Consumer price indexes \| Euro

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Extent:	application/pdf
Series:	Working Paper Series.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number WP-07-02
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005419959