Amstad, Marlene; Huan, Ye; Ma, Guonan - 2014
even exclude important information. This paper develops a new underlying inflation gauge (UIG) for China which … China in modelling inflation. The paper is the first application of this type of dynamic factor model for inflation to any … large emerging market economy. Our UIG for China is less noisy but still closely tracks the headline CPI. It does not suffer …