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 …

We study a model with repeated moral hazard where financial contracts are not fully indexed to inflation because … indexed to the nominal price and, as a result, their investment is more sensitive to nominal price shocks. We also find that … the overall degree of nominal indexation increases with the uncertainty of the price level. An implication of this is that …

inflation and output dynamics in the United States. In particular, I find that real money balance effects are quantitatively … sticky price model, two stylized facts can be explained: the modestly procyclical real wage response to a monetary policy …

at the costs of inflation, or the benefits of price stability, in the context of four themes: inflation creates …This paper surveys the empirical literature on the benefits of low inflation emphasizing contributions since 1990. It … follows the framework of a section in the Bank's 1990 Annual Report, "The Benefits of Price Stability." This framework looks …

A vector error-correction Model (VECM) that Forecasts inflation between the current quarter and eight quarters ahead is … found to privide significant leading information about inflation. The model focusses on th effects of deviations of M1 from …

The purpose ot this study is to test the hypothesis that inflation uncertainty increases at higher levels of inflation … conditional variance of the error term to be time-varying. Since this variance is a proxy for inflation uncertainty, a positive … relationship between the conditional variance and inflation would be interpreted as evidence that inflation uncertainty increases …

This paper examines the performance of M1 in an indicator model of inflation over time horizons as long as 16 quarters … the deviations of M1 from its long-run path provide "distant-early-warning" information about the future path of inflation. …