nominal policy interest rate and the CPI inflation rate decline during housing booms and rise as house prices fall. These … demonstrate that stronger policy responses to inflation amplify housing-market boom-bust cycles. Also, higher loan-to-value ratios … stability ; Inflation targets …

consumer price index has declined in Canada since the early 1980s and is currently close to zero. Taylor (2000) suggests that … this phenomenon, which has been observed for several other countries, may be due to a change in the behaviour of inflation …. Specifically, moving from a high to a low-inflation environment has reduced the expected persistence of cost changes and, by …