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January 1993 to December 2020 for five inflation-targeting countries (the UK, Canada, Australia, New Zealand and Sweden) and …
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policy. We study how firms form their inflation expectations using quarterly firm-level data from the Bank of Canada … structural shift specifications suggests that inflation expectations in Canada have drifted downward since the Great Recession …
Persistent link: https://www.econbiz.de/10011540769
,rather than exchange rate regimes and questions of policy credibility and political accountability are crucial. Canada's recent … performance are assessed. The most economically attractive among alternative monetary orders, the adoption by Canada of the US … politically attainable. Intermediate arrangements are unattractive and clearly inferior to Canada's current monetary order. …
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Engel and Rogers (1996) find that crossing the US-Canada border can considerably raise relative price volatility and …
Persistent link: https://www.econbiz.de/10003300940
Many inflation targeting central banks are facing calls to expand their list of policy goals. I discuss how recent research provides new insights into the goals of policy and the tradeoffs presented by multiple goals. I focus particular attention on the role of unemployment and labor market...
Persistent link: https://www.econbiz.de/10010438355
In a standard New Keynesian model, a myopic central bank concerned with stabilizing inflation and changes in the output gap will implement a policy under discretion that replicates the optimal, timeless perspective, precommitment policy. By stabilizing output gap changes, the central bank...
Persistent link: https://www.econbiz.de/10011408406
official policy rates and those implied by three types of Taylor rules in both inflation targeting countries (the UK, Canada …
Persistent link: https://www.econbiz.de/10013285605
In this paper we analyze flexible inflation targeting and nominal income targeting as two different monetary strategies in a simple dynamic macromodel. Furthermore we analyze inflation targeting in a two-period time-lag version of the model. The key results of our paper are: First, for both...
Persistent link: https://www.econbiz.de/10009781578