Bagliano, Fabio C.; Golinelli, Roberto; Morana, Claudio - 2013
Using a common trends model, we estimate a forward-looking core inflation measure for the Euro area based on long …-run relations among major macroeconomic variables, bearing the interpretation of long-run inflation forecast. The proposed measure … may be particularly suitable for the two-pillar monetary policy strategy of the ECB which focuses on medium-term inflation …