Core Inflation Measures and Statistical Issues in Choosing Among Them

Download or read book Core Inflation Measures and Statistical Issues in Choosing Among Them written by Mick Silver and published by International Monetary Fund. This book was released on 2006-04 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides an overview of statistical measurement issues relating to alternative measures of core inflation, and the criteria for choosing among them. The approaches to measurement considered include exclusion-based methods, imputation methods, limited influence estimators, reweighting, and economic modeling. Criteria for judging which approach to use include credibility, control, deviations from a smoothed reference series, volatility, predictive ability, causality and cointegration tests, and correlation with money supply. Country practice can differ in how the approaches are implemented and how their appropriateness is assessed. There is little consistency in the results of country studies to readily suggest guidelines on accepted methods.