Inflation expectations are a key determinant of actual and future inflation and thus matter for the conduct of monetary … policy. We study how firms form their inflation expectations using quarterly firm-level data from the Bank of Canada …'s Business Outlook Survey, spanning the 2001 to 2015 period. The data are aggregated to construct an inflation expectations index …

economic performance under inflation targets, and arguments that the flexible exchange rate has undermined real economic …

considerably stronger relative to the impact on GDP since the mid-1980s, while the effects on inflation have become weaker …

impact inflation, little crowding out of private expenditure exists, and the multiplier tends to be larger compared to a one …

data determine two inflation regimes and find that they are characterized by high and low inflation volatility. We then … exhibit a more substantial and more persistent effect on downstream prices during periods of elevated inflation volatility … effective in State 2. Exogenously differentiating regimes by the level of inflation or the shock size does not reveal state …