2002Journal of money credit and bankingRequires access

A Simple Adaptive Measure of Core Inflation

Timothy Cogley

Open publisher page 235 citations

Abstract

This paper proposes a new measure of core inflation and compares it with several existing measures. The new measure is adaptive and is designed to track sudden and persistent movements in inflation, such as those arising from changes in monetary policy regimes. The adaptive measure filters out transients more effectively than existing measures, and it is a superior predictor of locally mean-reverting components of inflation.

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What this paper is about

This paper proposes a new measure of core inflation and compares it with several existing measures. The new measure is adaptive and is designed to track sudden and persistent movements in inflation, such as those arising from changes in monetary policy regimes. The adaptive measure filters out transients more effectively than existing measures, and it is a superior predictor of locally mean-reverting components of inflation.

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OpenAlex reports 235 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

This paper proposes a new measure of core inflation and compares it with several existing measures. The new measure is adaptive and is designed to track sudden and persistent movements in inflation, such as those arising from changes in monetary policy regimes. The adaptive measure filters out transients more effectively than existing measures, and it is a superior predictor of locally mean-reverting components of inflation.

Key concepts: Core inflation, Measure (data warehouse), Inflation (cosmology), Economics, Core (optical fiber), Monetary policy, Simple (philosophy), Mean reversion

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