Skip to content
RDP 2006-11: Component-smoothed Inflation: Estimating the Persistent Component of Inflation in Real Time
Equation (2)
P
i
t
*
=
(
P
i
t
−
1
*
+
μ
i
t
−
1
)
+
α
i
t
(
P
i
t
−
(
P
i
t
−
1
*
+
μ
i
t
−
1
)
)
μ
i
t
=
μ
i
t
−
1
+
γ
(
Δ
P
i
t
*
−
μ
i
t
−
1
)
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacaWGqb Waa0baaSqaaiaadMgacaWG0baabaGaaiOkaaaakiabg2da9maabmaa baGaamiuamaaDaaaleaacaWGPbGaamiDaiabgkHiTiaaigdaaeaaca GGQaaaaOGaey4kaSIaeqiVd02aaSbaaSqaaiaadMgacaWG0bGaeyOe I0IaaGymaaqabaaakiaawIcacaGLPaaacqGHRaWkcqaHXoqydaWgaa WcbaGaamyAaiaadshaaeqaaOWaaeWaaeaacaWGqbWaaSbaaSqaaiaa dMgacaWG0baabeaakiabgkHiTmaabmaabaGaamiuamaaDaaaleaaca WGPbGaamiDaiabgkHiTiaaigdaaeaacaGGQaaaaOGaey4kaSIaeqiV d02aaSbaaSqaaiaadMgacaWG0bGaeyOeI0IaaGymaaqabaaakiaawI cacaGLPaaaaiaawIcacaGLPaaaaeaacqaH8oqBdaWgaaWcbaGaamyA aiaadshaaeqaaOGaeyypa0JaeqiVd02aaSbaaSqaaiaadMgacaWG0b GaeyOeI0IaaGymaaqabaGccqGHRaWkcqaHZoWzdaqadaqaaiabfs5a ejaadcfadaqhaaWcbaGaamyAaiaadshaaeaacaGGQaaaaOGaeyOeI0 IaeqiVd02aaSbaaSqaaiaadMgacaWG0bGaeyOeI0IaaGymaaqabaaa kiaawIcacaGLPaaaaaaa@78DD@