Kaihatsu, Sohei; Nakajima, Jouchi - Bank of Japan - 2015
This paper proposes a new econometric framework for estimating trend inflation and the slope of the Phillips curve with … a regime-switching model. As a unique aspect of our approach, we assume regimes for the trend inflation at one …-percent intervals, and estimate the probability of the trend inflation being in each regime. The trend inflation described in the …