Affiliation:
1. Department of Economics Korea University Seoul South Korea
2. Bank of Canada Ottawa ON Canada
3. Department of Econometrics and Business Statistics Monash University Caulfield East VIC Australia
Abstract
SummaryWe distinguish between the goods and services sectors in an unobserved components model of U.S. inflation. We find that prior to the early 1990s, both sectors contributed to volatility of aggregate trend inflation, while since then, this has been predominantly driven by the services sector, with the trend in goods inflation being essentially flat. We document that the large reduction in the volatility of the trend for goods inflation has been the most important driver of the decline in the volatility in aggregate trend inflation reported by Stock and Watson (2007). Our results appear robust to COVID‐19 inflation developments.
Funder
Australian Research Council
Korea University
Subject
Economics and Econometrics,Social Sciences (miscellaneous)
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献