Kacaribu, Febrio (2002): Measuring Core Inflation in Indonesia: An Asymmetric Trimmed-Mean Approach.
Download (1495Kb) | Preview
Given the highly kurtotic and positively skewed characteristics of cross-sectional distribution of price, asymmetric trimmed-mean is the best approach in extracting the statistical medium-term trend of inflation.
This paper uses asymmetric trimmed-mean approach to measure core inflation in Indonesia. This measure, as compared with the headline inflation, is more correlated with the growth of money supply in the past. Additionally, it is a reliable indicator of inflation trend.
|Item Type:||MPRA Paper|
|Original Title:||Measuring Core Inflation in Indonesia: An Asymmetric Trimmed-Mean Approach|
|Keywords:||Core Inflation; Trimmed Mean; Indonesia|
|Subjects:||C - Mathematical and Quantitative Methods > C4 - Econometric and Statistical Methods: Special Topics > C43 - Index Numbers and Aggregation
E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level; Inflation; Deflation
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E50 - General
|Depositing User:||Febrio Kacaribu|
|Date Deposited:||21. Nov 2009 05:56|
|Last Modified:||12. Feb 2013 18:28|
L. Ball, N. G. Mankiw (1994). Asymmetric Price Adjustment and Economic Fluctuations. Economic Journal 104, 247-261.
L. Ball, N. G. Mankiw (1995). Relative-Price Changes As Aggregate Supply Shocks. Quarterly Journal of Economics 110, 161-193.
M. F. Bryan et al. (1997). Efficient Inflation Estimation. NBER Working Paper Series 6183.
M. F. Bryan, S. G. Cecchetti (1994). Measuring Core Inflation. Monetary Policy. N. G. Mankiw. University of Chicago Press for NBER, Chicago, 195-215.
W. E. Diewert (1995). Axiomatic and Economic Approaches to Elementary Price Indexes. NBER Working Paper Series 5104.
S. Roger (2000). Relative Prices, Inflation and Core Inflation. IMF Working Paper (00/58).
M. A. Wynne (1999). Core Inflation: A Review of Some Conceptual Issues, Federal Reserve Bank of Dallas.