Title of article :
Can aggregationexplainthepersistenceofinflation
Author/Authors :
Filippo Altissimo، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2008
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
Journal title :
Journal of Monetary Economics
