Inflation Bias after the Euro: Evidence from the UK and Italy
27 Pages Posted: 14 Oct 2004
Date Written: October 2004
Abstract
This paper presents an indirect approach to investigate the possible existence of measurement error bias in the Harmonized Index of Consumer Prices for the UK and Italy. Our empirical results show that there is no significant evidence for a bias in the UK, nor for Italy prior to the introduction of the Euro. Since January 2002, however, the inflation rate in Italy has been underestimated by at least 6 percentage points.
Keywords: Inflation, Measurement bias
JEL Classification: C22, C43, D14, E31
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
By Ernst Fehr and Jean-robert Tyran
-
Evidence on Macroeconomic Complementarities
By Russell Cooper and John Haltiwanger
-
Does Money Illusion Matter? An Experimental Approach
By Ernst Fehr and Jean-robert Tyran
-
Individual Irrationality and Aggregate Outcomes
By Ernst Fehr and Jean-robert Tyran
-
The Inflationary Consequences of a Currency Changeover: Evidence from the Michelin Red Guide
By Giancarlo Marini, Fabrizio Adriani, ...
-
By Ernst Fehr and Jean-robert Tyran
-
Money Illusion and Coordination Failure
By Ernst Fehr and Jean-robert Tyran
-
Money Illusion and Coordination Failure
By Ernst Fehr and Jean-robert Tyran
-
Individual Expectations, Limited Rationality and Aggregate Outcomes
By Te Bao, Cars H. Hommes, ...