00000nam 2200000zi 4500 9.893355 CaOODSP 20221107173426 m o d f cr mn||||||||| 201105t20202020onca ob f000 0 eng d CaOODSP eng rda CaOODSP n-us--- n-cn--- u-at--- x6y2 FB3-5/2020-45E-PDF Eo, Yunjong, author. Understanding trend inflation through the lens of the goods and services sectors / by Yunjong Eo, Luis Uzeda and Benjamin Wong. Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2020. ©2020 1 online resource (ii, 34, 38 pages) : illustrations (chiefly colour). text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2020-45 "Last updated: November 3, 2020." Includes bibliographical references. "We distinguish between the goods and services sectors in an otherwise standard unobserved components model of US inflation. Our main finding is that, while both sectors used to contribute to the overall variation in aggregate trend inflation, since the 1990s this variation has been driven almost entirely by the services sector. Two changes in sector-specific inflation dynamics are responsible for this finding: (i) a large fall in the variance of trend goods inflation; and (ii) the disappearance of comovement between trend goods and trend services inflation. Extensions to our baseline analysis by excluding energy prices and decomposing trend inflation into a common and a relative price component suggest a possible role of monetary policy in explaining our empirical findings. We also document similar changes in inflation dynamics internationally when extending our analysis to Australia and Canada"--Abstract, page ii. Inflation (Finance) United States Econometric models. Inflation (Finance) Canada Econometric models. Inflation (Finance) Australia Econometric models. Monetary policy United States Econometric models. Monetary policy Canada Econometric models. Monetary policy Australia Econometric models. Inflation États-Unis Modèles économétriques. Inflation Canada Modèles économétriques. Inflation Australie Modèles économétriques. Politique monétaire États-Unis Modèles économétriques. Politique monétaire Canada Modèles économétriques. Politique monétaire Australie Modèles économétriques. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 2020-45. (CaOODSP)9.806221 PDF 1.44 MB https://publications.gc.ca/collections/collection_2020/banque-bank-canada/FB3-5-2020-45-eng.pdf