Bradley, Michael D.; Jansen, Dennis W.; Sinclair, Tara M. - Crawford School of Public Policy, Australian National … - 2013
price changes? To examine this question we decompose CPI inflation and "core" inflation into their permanent and transitory … to offsetting transitory shocks correlated with the permanent shocks. The stationarity of inflation may be time …-varying, so we examine the performance of the core measure of inflation for periods during which it appears that inflation is I(1 …