1 / 8

FGV/IBRE

FGV/IBRE. Core Inflation Estimators for the Brazilian Economy Jack Schechtman Rebecca Barros Core Inflation and Price Index Harmonization Seminar held at Central Bank of Brazil Rio de Janeiro, 07-08 June 2001. Starting Point. Jevons (1865) - Generalized Inflation. Main Objective.

lyndon
Download Presentation

FGV/IBRE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FGV/IBRE Core Inflation Estimators for the Brazilian Economy Jack Schechtman Rebecca Barros Core Inflation and Price Index Harmonization Seminar held at Central Bank of Brazil Rio de Janeiro, 07-08 June 2001

  2. Starting Point • Jevons (1865) - Generalized Inflation

  3. Main Objective • To extract information from individual price changes in order to detect a generalized movement of prices

  4. Relative Price Adjustment and Cross Section Distribution • Cross Section Distribution • High Degree of Kurtosis (Non-normal distribution) • Arithmetic Mean looses efficiency as a central measure estimator • Menu Cost • Market Imperfections • Asymmetric Information • Expectations

  5. Our Approach • The traditional methodology of trimmed means (Bryan, Ceccheti, Winggins and Roger) with the following additional considerations: • Individual price changes may carry information about the generalized movement of prices • There must be a special treatment for prices that are adjusted once a year or a few times per year - e.g. administered prices, etc

  6. Our Approach

  7. Measure of Core Inflation

  8. NEW RESEARCH ON MEASURING CORE INFLATION -INFORMATION CORE -

More Related