The purpose of the paper is to introduce the framework for decomposing the forecast of headline inflation, obtained by … core inflation. The model for inflation decomposition is a small structural model, set up in state space framework. Kalman … filter procedure is applied to filter the future paths of CPI components, given projected headline inflation obtained by …

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

This paper conducts a structural analysis of inflation persistence in the United Kingdom between 1965-2009. I allow for … and stochastic shock volatility. The first policy regime responds passively to movements in inflation, adjusting the … other regime responds actively to inflation and places less weight on exchange rate movements. This regime is present for …

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 …

The establishment of the inflation targeting regime in Paraguay is relatively recent, however, the results have been … only reduce inflation levels, but also align inflation expectations along the medium-term inflation target. Previously the … inflation targeting regime has provided relevant information to economic agents on the monetary policy objectives, which has …

This paper analyzes the time-varying degree of inflation expectations anchoring in Bolivia and, more precisely, whether … inflation expectations have been in line with the inflation objectives announced by the Central Bank of Bolivia (BCB, for its … and medium-term inflation expectations. Second, monetary policy in Bolivia is under a monetary-targeting regime, so BCB …