191
Views
4
CrossRef citations to date
0
Altmetric
Original Articles

A SVAR model for estimating core inflation in the Euro zone

Pages 149-154 | Published online: 20 Aug 2006
 

Abstract

A traditional role of central banks has been to protect the purchasing power of money by keeping a roof on inflation. Recently, several central banks have explicitly assumed an inflation control target. This is the case, among others, of the European Central Bank (ECB) whose monetary policy goal is to keep an annual inflation rate below 2% over a medium-term horizon (ECB, 2001). In practice, inflation is often measured in terms of the Consumer Price Index (CPI). However, the headline inflation rate is not totally under the control of the ECB. In this study core inflation is measured by means of the structural VAR approach, in particular it is based on long-run restrictions over crucial macroeconomic variables: inflation, money and output. Core inflation is estimated and compared with the standard measured inflation.

Notes

Aggregation procedures can be consulted on Beyer et al. (Citation2000).

Data are downloadable at http://www.uned.es/dpto-economia-aplicada-cuantitativa1/mariano.htm

Log in via your institution

Log in to Taylor & Francis Online

PDF download + Online access

  • 48 hours access to article PDF & online version
  • Article PDF can be downloaded
  • Article PDF can be printed
USD 53.00 Add to cart

Issue Purchase

  • 30 days online access to complete issue
  • Article PDFs can be downloaded
  • Article PDFs can be printed
USD 205.00 Add to cart

* Local tax will be added as applicable

Related Research

People also read lists articles that other readers of this article have read.

Recommended articles lists articles that we recommend and is powered by our AI driven recommendation engine.

Cited by lists all citing articles based on Crossref citations.
Articles with the Crossref icon will open in a new tab.