We combine the ideas of the trimmed mean and the Edgeworth index to construct an alternative measure of core inflation named "Trim of Most Volatile Components (TMVC)". At each point of time this measure trims away the components of the price index, which have been most volatile in the past. TMVC...

From 2001 the fiscal policy in Chile has been based on a structural surplus rule. Under this rule, the government is committing itself to maintain its expenditures equal to the structural revenue minus the target for the structural surplus, which is expressed in terms of the GDP. The calculation...