inflation and output dynamics in the United States. In particular, I find that real money balance effects are quantitatively …

We show how to use optimal control theory to derive optimal time-consistent Markov-perfect government policies in …

Canadian monetary policy. If, for example, the Bank of Canada is using interest rates to target an inflation rate of 2 per cent … and there is an 8-quarter lag in the effect of the interest rate on inflation, then deviations of inflation from 2 per … quarters. This would imply that empirical causality tests of monetary policy on inflation could be very misleading. Our test …

points in the unionized private sector during the low-inflation period of the 1990s. …

specification with a time-changing variance and menu-cost effects. The variance of the notional distribution fell as inflation … lifetime of contracts. On balance, the evidence suggests that the long-run trade-off between inflation and the unemployment … rate is close to vertical at inflation rates of 2 per cent or more if productivity growth is near the average in recent …

bound is relatively low, especially if the inflation target established for the monetary authority is 2 per cent or more … rate for lower inflation targets. Various caveats apply to drawing conclusions for Canada from the papers we surveyed …

The authors investigate the implications of house-price bubbles for the optimal inflation-target horizon using a …, given the distribution of shocks and inflation persistence over the past 25 years, the optimal target horizon for Canada … inception of the inflation-targeting regime. The authors' results also suggest that it may be appropriate to take a longer view …