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Commodity prices and P-star

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Listed:
  • Edward J. Bryden
  • Jeffrey J. Hallman

Abstract

An illustration of how the P-star indicator of future inflation can be modified to include information about the recent behavior of commodity prices. This approach yields more accurate short-run inflation forecasts while still retaining the property that, over the long run, only money matters.

Suggested Citation

  • Edward J. Bryden & Jeffrey J. Hallman, 1992. "Commodity prices and P-star," Economic Review, Federal Reserve Bank of Cleveland, vol. 28(Q I), pages 11-17.
    • Handle: RePEc:fip:fedcer:y:1992:i:qi:p:11-17:n:v.28no.1
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    References listed on IDEAS

    as
    1. Yock Y. Chong & David F. Hendry, 1986. "Econometric Evaluation of Linear Macro-Economic Models," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(4), pages 671-690.
    2. Hallman, Jeffrey J & Porter, Richard D & Small, David H, 1991. "Is the Price Level Tied to the M2 Monetary Aggregate in the Long Run?," American Economic Review, American Economic Association, vol. 81(4), pages 841-858, September.
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