,rather than exchange rate regimes and questions of policy credibility and political accountability are crucial. Canada's recent … economic performance under inflation targets, and arguments that the flexible exchange rate has undermined real economic … performance are assessed. The most economically attractive among alternative monetary orders, the adoption by Canada of the US …

, thereby controlling inflation expectations, it can improve welfare by stabilizing short-run aggregate shocks. The optimal …

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 …Inflation expectations are a key determinant of actual and future inflation and thus matter for the conduct of monetary …

real time in Canada. Stronger survey results lead to a significantly higher policy rate over the period of study (2001 …. We use data from the Bank of Canada’s quarterly Business Outlook Survey. Given our short sample, we however focus on …

stronger bargaining position when they try to prevent a cut in money wages. If inflation is so low that some money wages have … to be cut, workers stronger bargaining position requires higher unemployment in equilibrium. However, inflation is more … stable when money wage rigidity binds, providing an incentive for monetary policy makers to choose a low target for inflation …

The paper analyses the reasons for Japan's persistently low inflation since the bursting of the Japanese bubble economy … (low inflation conundrum). It is shown that Japan experienced a structural break from a high-growth period with relatively … high inflation to a low-growth period with exceptionally low inflation since the early 1990s. We show based on a stylized …

estate, as well as the costs of public goods to develop alternative inflation measures in Germany since the introduction of … the euro. Real economic growth as well as median wage developments are reexamined in light of the alternative inflation …

aggregate demand gains momentum. If inflation also has inertia, the central bank still overheats the economy during the low …