responds to inflation and output volatility, especially during economic crises. This framework offers a promising alternative …

In this paper, we estimate trend inflation in Sweden using an unobserved components stochastic volatility model. Using … data from 1995Q4 to 2021Q4 and Bayesian estimation methods, we find that trend inflation has been well-anchored during the … period - although in general at a level below the inflation target - and it does not appear to have been affected much by the …

indicator for future inflation, therefore being only instrumental (to stabilize inflation) rather than important per se. …