. According to the inflation dynamics formula drawn under this condition, the demand pressure measured by output gap is found to … cause different impacts on inflation according to different expectation horizons. The empirical analysis of this model using …

, inflation, and interest rate, using a simple DSGE – model along with flexible trend specification. The extracted cyclical … volatility, while inflation resembles that from BK filtering. This implies that the usual practice of applying a single filtering … and (2) including irregular components (in inflation rate) may deliver interesting/important implication for gap estimates …