Arbeitspapier
Unravelling the secrets of euro area inflation: A frequency decomposition approach
[Introduction] The role of money and credit for the economy, and especially for inflation, has always attracted a lot of attention in the economic literature (see, for instance, Friedman and Schwartz (1963), Bernanke (1993)) and, more recently, Nelson (2008), Benati (2009), Lucas and Nicolini (2015), Hevia and Nicolini (2017) as well as Anderson, Bordo and Duca (2017)). This paper addresses some key questions regarding the fundamental nature of the relationships among those variables and attempts to analyse them for the euro area by means of filter-design techniques. After decomposing the variables over different frequencies, regressions are carried out and the main drivers of inflation over different horizons are derived in a single-equation approach. Robustness checks are also carried out by choosing different combinations of explanatory variables, price measures (GDP deflator and house prices) and frequency horizons. The paper is structured as follows. After a review of the literature and methodology, the basic framework applied in the analysis as well as the relevant variables are illustrated in more details. Afterwards, the results at different frequencies for HICP, the GDP deflator and house prices are provided. The final section concludes.
- ISBN
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978-3-942100-62-5
- Language
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Englisch
- Bibliographic citation
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Series: Wismarer Diskussionspapiere ; No. 06/2018
- Classification
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Wirtschaft
Price Level; Inflation; Deflation
Money Supply; Credit; Money Multipliers
Monetary Policy
- Event
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Geistige Schöpfung
- (who)
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Gerdesmeier, Dieter
Roffia, Barbara
Reimers, Hans-Eggert
- Event
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Veröffentlichung
- (who)
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Hochschule Wismar, Fakultät für Wirtschaftswissenschaften
- (where)
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Wismar
- (when)
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2018
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Gerdesmeier, Dieter
- Roffia, Barbara
- Reimers, Hans-Eggert
- Hochschule Wismar, Fakultät für Wirtschaftswissenschaften
Time of origin
- 2018
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