Why Should Central Banks Avoid the Use of the Underlying Inflation Indicator?

This paper assesses the usefulness of the commonly used underlying inflation indicator, in light of the criteria proposed in Marques et al. (2000). Empirical evidence for a group of six countries strongly suggets that the use of underlying inflation as an indicator of trend inflation should be avoided.

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Year of publication:	2000
Authors:	Marques, Carlos Robalo ; Neves, Pedro Duarte ; Silva, Afonso Gonçalves da
Institutions:	Banco de Portugal

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Classification:	C43 - Index Numbers and Aggregation ; E31 - Price Level; Inflation; Deflation ; E52 - Monetary Policy (Targets, Instruments, and Effects)
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008524226