Alternative Core Inflation Measures in Nigeria: An Examination

Autor:	Donald G. Mbaka, Nuruddeen Usman, Ladi R. Bala-Keffi
Rok vydání:	2020
Předmět:	Inflation Core (game theory) Central bank Inflation targeting Policy making media_common.quotation_subject Headline inflation Immunology Monetary policy Economics Monetary economics Core inflation media_common
Zdroj:	Applied Economics and Finance. 7:112
ISSN:	2332-7308 2332-7294
DOI:	10.11114/aef.v7i4.4911
Popis:	Core inflation measures have played an important role in the conduct of monetary policy at various central banks around the world. We examine core inflation in Nigeria using non-traditional measures and assess their persistence, to determine whether the Central Bank of Nigeria (CBN) should pay attention to one or other of these measures when assessing inflation developments. We find that the two new measures outperform the official core rate in tracking the persistence of headline inflation. The findings of this study will aid policy making within the Central bank of Nigeria (CBN) particularly where inflation targeting is adopted as the monetary policy framework. These core inflation measures provide a useful guide to central bankers both for monetary policy decisions and as a communication tool. They are a better predictor of future inflation depicting the more persistent influences on underlying inflation, which are of interest to policymakers (e.g. Clark, 2001; Blinder and Reis, 2005; Smith, 2004 and Dolmas &Wynne, 2008).
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::b8cccd037e4e998234091d4209d572b7 https://doi.org/10.11114/aef.v7i4.4911 Zobrazit plný text záznamu