Munich Personal RePEc Archive

Estimation of the Business Cycles - Selected Methodological Problems of the Hodrick-Prescott Filter Application

Kapounek, Svatopluk (2009): Estimation of the Business Cycles - Selected Methodological Problems of the Hodrick-Prescott Filter Application. Published in: Polish Journal of Environmental Studies , Vol. 18, No. 5B (2009): pp. 227-231.

[img]
Preview
PDF
MPRA_paper_27567.pdf

Download (169Kb) | Preview

Abstract

The aim of this article is to highlight a number of problems due to a rather „mechanical“ application of the Hodrick-Prescott Filter and its possible implication for the monetary policy decision-making process. The author concludes that HP filter is not able to estimate the potential output, however it could be used as the efficient tool in monetary policy decision making process and its stabilizing function.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.