This paper assesses the performance of core inflation measures based on the structural VAR approach. Since core or monetary inflation is not directly observable, we develop a monetary general equilibrium model that fits real aggregated European data and use this model to generate time series for...

Since price stability is the ESCB's primary objective, the evaluation of price development in the light of the second pillar of the ESCB's monetary policy strategy is essential. As the European Central Bank has started publishing its inflation forecast for the euro area in December 2000,...

This paper assesses the performance of core inflation measures based on the structural VAR approach. Since core or monetary inflation is not directly observable, we develop a monetary general equilibrium model that fits real aggregated European data and use this model to generate time series for...