Chan, Joshua C. C.; Koop, Gary; Potter, Simon M. - In: Journal of Business & Economic Statistics 31 (2013) 1, pp. 94-106
This article introduces a new model of trend inflation. In contrast to many earlier approaches, which allow for trend inflation to evolve according to a random walk, ours is a bounded model which ensures that trend inflation is constrained to lie in an interval. The bounds of this interval can...