Abstract This paper proposes the use of wavelet methods to estimate U.S. core inflation. Itexplains wavelet methods and suggests they are ideally suited to this task. Comparisons are made with traditional CPI-based and regression-based measures for their performance in following trend inflation and predicting future inflation. Results suggest that wavelet-based measures perform better, and sometimes much better, than the Traditional approaches. These results suggest that wavelet methods are a promising avenue for future research on core inflation.

Url http://www.ucd.ie/bankingfinance/docs/wp/WP-06-15.pdf

Collections Ireland -> University College Dublin -> Institutes and Centres
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Ireland -> University College Dublin -> College of Business