A Multivariate Filter for Measuring Potential Output and the NAIRU Application to the Czech Republic

This paper presents a multivariate (MV) methodology for obtaining measures of excess demand that can facilitate discussion of monetary policy issues and improve policy decisions. Using data for the Czech Republic, a growing economy undergoing major structural change, it shows how the use of more inf...

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Bibliographic Details
Main Author: Benes, Jaromir
Other Authors: N'Diaye, Papa
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2004
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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300 |a 31 pages 
651 4 |a Czech Republic 
653 |a Interest rates 
653 |a Inflation 
653 |a Finance 
653 |a Potential output 
653 |a Output gap 
653 |a Financial services 
653 |a Real interest rates 
653 |a Deflation 
653 |a Production 
653 |a Currency 
653 |a Model Construction and Estimation 
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653 |a Price Level 
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653 |a Banks and Banking 
653 |a Prices 
653 |a Macroeconomics 
653 |a Real exchange rates 
653 |a Interest Rates: Determination, Term Structure, and Effects 
653 |a Economic theory 
653 |a Monetary Policy 
653 |a Foreign exchange 
653 |a Production and Operations Management 
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520 |a This paper presents a multivariate (MV) methodology for obtaining measures of excess demand that can facilitate discussion of monetary policy issues and improve policy decisions. Using data for the Czech Republic, a growing economy undergoing major structural change, it shows how the use of more information to condition the paths of potential output and the non accelerating inflation rate of unemployment (NAIRU) improves on univariate methods as the Hodrick-Prescott (HP) filter