Fast micro and slow macro

Fast micro and slow macro

by Filippo Altissimo

Book 729 of Working paper series / European Central Bank -- working paper

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"An aggregation exercise is proposed that aims at investigating whether the fast average adjustment of the disaggregate inflation series of the euro area CPI translates into the slow adjustment of euro area aggregate inflation. We first estimate a dynamic factor model for 404 inflation sub-indices of the euro area CPI. This allows to decompose the dynamics of inflation sub-indices in two parts: one due to a common"--Federal Reserve Bank of Chicago web site.

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