Research Discussion Paper – RDP 9510 Modelling Inflation in Australia

Contents

• Introduction
• A Conceptual Framework
• The Data
• Integration and Cointegration
• A Single Equation Model of Inflation
• The Model's Properties
• Encompassing and Forecasting
• Conclusions
• Appendix 1: Data Definitions
• Appendix 2: Design of the Empirical ECM
• Appendix 3: An Alternative Model of the CPI
• References

The views expressed herein are those of the authors and do not necessarily reflect those of the Reserve Bank of Australia, the Board of Governors of the Federal Reserve System, or other members of their staffs.