References Bai, J. (2003), “Inferential Theory for Factor Models of Large Dimensions,” Econometrica, 71, 135-171. Clark, T. E. (2001), “Comparing Measures of Core Inflation,” Economic Review,2nd Quarter, 5-31. Clements, K.W. and Izan, H. Y. (1987), “TheMeasurement of Inflation: A Stochastic Approach,” Journal of Business and Economic Statistics, 5, 339-350. Cristadoro, R., Forni, M., Reichlin, M. and Veronese, G. (2005), “A Core Inflation Indicator for the Euro Area,” Journal of Money, Credit and Banking, 37, 539-560. Croux, C., Forni, M. and Reichlin, L. (2001), “A Measure of Comovement for Economic Indicators: Theory and Empirics,” Review of Economics and Statistics, 83, 232-241. Bryan, M. F. and Cecchetti, S. G. (1993), “The Consumer Price Index as a Measure of Inflation,” Federal Reserve Bank of Cleveland Economic Review, 15-24. Bryan, M. F. and Cecchetti, S. G. (1994), “Measuring Core Inflation,” in Studies in Business Cycles, vol. 29. (N. Gregory Mankiw, ed.), Chicago and London (University of Chicago). Donkers, H. W., Jensen, J. B., Hyrkko, J., Lehtinen, I., Murphy, D. C., Stolpe, G. and Turvey, R. (1983) “Adjusting the CPI for Indirect Taxes,” Bulletin of Labor Statistics, 4, 26-30. Eckstein, O. (1981), “Core Inflation,” New York, Prentice Hall. Geweke, J. and Zhou, G. (1996), “Measuring the Pricing Error of the Arbitrage Pricing Theory,” The Review of Financial Studies, 9, 557-587. Gordon, R. (1975), “Alternative Responses of Policy to External Supply Shocks,” Brookings Papers on Economic Activity, 6, 183-206. Kose, M. A., Otrok, C. and Whiteman, C. H. (2003), “International Business Cycles: World, Region, and Country-Specific Factors,” The American Economic Review, 93, 1216. Reis, R. and Watson, M. W. (2010), “Relative Goods’ Prices, Pure Inflation, and the Philips Correlation,” American Economic Journal Macroeconomics, forthcoming. Rich and Steindel (2007), “A Comparison of Measures of Core Inflation,” Federal Reserve Bank of New York Manuscript. Stock, J. H. and Watson, M. W. (1998), “Diffusion indexes,” NBER working paper, No. 6702. Wyne, M. A. (2008), “Core Inflation: A Review of Some Conceptual Issues,” Federal Reserve Bank of St. Louis Review, 90(3), 205-228.