The Federal Reserve Board eagle logo links to Board's home page

International Finance Discussion Papers
The International Finance Discussion Papers logo links to the International Finance Discussion Papers home page Modelling Inflation in Australia
Gordon de Brouwer and Neil R. Ericsson
1995-530  (November 1995)

Abstract:  This paper develops an empirically constant, data-coherent, error cor­rection model for inflation in Australia. The level of consumer prices is a mark-up over domestic and import costs, with adjustments for dynamics and relative aggregate demand. We address issues of cointegration, general to specific modelling, dynamic specification, model evaluation and test­ing' parameter constancy, and exogeneity. We also test this model against existing models of Australian prices: this model encompasses (but is not encompassed by) the existing models.

Full paper(958 KB PDF)

PDF files: Adobe Acrobat Reader   ZIP files: PKWARE


Home | IFDPs | List of 1995 IFDPs
Accessibility | Contact Us
Last update: September 17, 2008