How to detrend the prices
Posted: Sun Dec 16, 2012 8:42 pm
Hi guys, would you please help me in this matter.
I have a NK model with CPI and commodity prices in level. What I know is Price is detrended by M/A. However I don't have Money in my model. Money is just unit of account and represented by interest rate in my model.
Would you please somebody give me a clue or a reference on this? Many thanks.
I have a NK model with CPI and commodity prices in level. What I know is Price is detrended by M/A. However I don't have Money in my model. Money is just unit of account and represented by interest rate in my model.
Would you please somebody give me a clue or a reference on this? Many thanks.