A Multivariate Filter for Measuring Potential Output and the NAIRU Application to the Czech Republic
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Summary:
This paper presents a multivariate (MV) methodology for obtaining measures of excess demand that can facilitate discussion of monetary policy issues and improve policy decisions. Using data for the Czech Republic, a growing economy undergoing major structural change, it shows how the use of more information to condition the paths of potential output and the non accelerating inflation rate of unemployment (NAIRU) improves on univariate methods as the Hodrick-Prescott (HP) filter.
Series:
Working Paper No. 2004/045
Subject:
Financial services Foreign exchange Inflation Output gap Potential output Prices Production Real exchange rates Real interest rates
English
Publication Date:
March 1, 2004
ISBN/ISSN:
9781451846508/1018-5941
Stock No:
WPIEA0452004
Pages:
31
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