New core inflation measure proposed in IMF paper
Measure takes into account volatility and persistence
Researchers from the IMF and Central Bank of Brazil propose a new measure of core inflation in a working paper published today, which is notable for taking both volatility and persistence into account.
In A Volatility and Persistence-Based Core Inflation, Tito Nícias Teixeira da Silva Filho and Francisco Marcos Rodrigues Figueiredo say most core inflation measures either exclude or downplay the importance of volatile items.
"However, some of those items show high persistence, and one certainly
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