Title of article
Can aggregationexplainthepersistenceofinflation
Author/Authors
Filippo Altissimo، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2008
Pages
11
From page
231
To page
241
Abstract
An aggregationexerciseisproposedthataimsatinvestigatingwhetherthefastaverage
adjustmentsofthedisaggregateinflationseriesoftheeuroareaCPIiscoherentwiththe
slow adjustmentofeuroareaaggregateinflation.Estimatingadynamicfactormodelfor
404 inflationsub-indicesoftheeuroareaCPIallowstodecomposethedynamicsof
inflationsub-indicesintoapartduetoacommonmacroeconomicshockandtosector
specificidiosyncraticshocks.Althoughidiosyncraticshocksdominatethevarianceof
sectoral prices,onecommonfactorappearstobethemaindriverofaggregatedynamics.
In addition,theheterogenouspropagationofthiscommonshockacrosssectoral
inflationrates,andinparticularitsslowpropagationtoinflationratesofservices,
generatesthepersistenceofaggregateinflation.Weconcludethattheaggregation
mechanismexplainsasignificantamountofaggregateinflationpersistence
Keywords
InflationPersistenceAggregationEuro areaPrice stickiness
Journal title
Journal of Monetary Economics
Serial Year
2008
Journal title
Journal of Monetary Economics
Record number
846288
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