This paper uses wavelets to develop a core inflation measure for inflation targeting central banks. The analysis is … applied to the case of New Zealand – the country with the longest history of explicit inflation targeting. We compare the …-term trend in inflation. It also has comparable forecasting performance to standard benchmarks. …

downwards since at least the stabilisation of inflation in 1992. We present several alternative estimates of a time varying … relationship between the Neo-Wicksellian real interest rate gap and future inflation. As in Neiss and Nelson (2003), these two are …

's inflation target objective. …

may have been temporarily boosted. However, demand pressures would have probably been greater and inflation higher. In … particular, results suggest that over the latter part of the 1990s annual inflation would have been around 1 percentage point …, then the variability of inflation and output would increase over the business cycle. …

suggesting that inflation expectations in New Zealand are moving towards rational expectations. Theory suggests this will make it … easier to control inflation after a temporary disturbance. …

deterioration is less pronounced for rules that use forecasts of inflation rather than just contemporaneous inflation. Under the …

inflation, we examine models of inflation that do and do not use the output gap. The Phillips curve, which relates inflation to … real activity, is regarded as the maintained theory of inflation. Models of inflation without the output gap include the … paper examines ten different models of inflation and estimates sixty-seven different specifications, some of which …

This paper develops a stochastically-based method of measuring core inflation, extending earlier research by Bryan and …