Quah, Danny; Quah, Danny; Vahey, Shaun P. - Centre for Economic Performance, LSE - 1995
In this paper we argue that measured (RPI) inflation is conceptually mismatched with core inflation: the difference is … more than just "measurement error". We propose a technique for measuring core inflation, based on an explicit long …-run economic hypothesis. Core inflation is defined as that component of measured inflation that has no (medium-to) long-run impact …