UK PPI Curve Generator with Smoothing

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 03/31/2000
04:05 PM ---------------------------

Zimin Lu
03/31/2000 01:43 PM
To: Vince J Kaminski/HOU/ECT@ECT, Maureen Raymond/HOU/ECT@ECT
cc:
Subject: UK PPI Curve Generator with Smoothing

---------------------- Forwarded by Zimin Lu/HOU/ECT on 03/31/2000 01:43 PM
---------------------------

Anjam Ahmad
03/28/2000 02:08 PM
To: Martina Angelova/LON/ECT@ECT, Trena McFarland/LON/ECT@ECT
cc: Dale Surbey/LON/ECT@ECT, Mary Thambiah/LON/ECT@ECT, Zimin Lu/HOU/ECT@ECT,
Stinson Gibner/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT
Subject: UK PPI Curve Generator with Smoothing

Hi Martina & Trena,

I think this is a reasonable smoothing method between the short and long-term
models - let me know if you need me to explain it. I also included the
short-term models so this is now a self-standing spreadsheet, but probably
still needs cleaning up a bit.

ZIMIN & STINSON:

We agreed on short-term and long-term models for DZCV and PLLU PPI indices in
a meeting with Dale and Trena and a simple smoothing is employed to give the
results as follows. Blue and red curves are the proposed DZCV and PLLU PPI
index forward curves whilst RPI is the market-derived black curve.

Regards,

Anjam
x35383