Description

The paper develops robust measures of core inflation for Vietnam that can be used in policy
 making. These core inflation measures (CIMs) are based on an analytical evaluation of the
 inflation process in Vietnam, and use a filtering approach to narrow down potential measures
 that satisfy certain empirically desirable criteria. The paper finds that commonly used
 exclusion-based measures (EBMs) do not perform well against these empirical criteria;
 trimmed mean measures (TMMs) do better. Among TMMs, “one trim does not fit all
 periods”; periods of high and variable inflation require larger trims, and conversely.
 EVIEWS and MATLAB programs which accompany the paper allow quick, timely
 replication of CIMs as new data become available, making them valuable tools for the State
 Bank of Vietnam on an ongoing basis.

More publications in this series: Working Papers

More publications by: Sanjay Kalra ; Bui Thi Trang Dzung