We examine the relative ability of simple inflation targeting (IT) and price level targeting (PLT) monetary policy … rules to minimize both inflation variability and business cycle fluctuations in Canada for shocks that have important … persistent cost-push pressures in the economy leading to a significant deterioration in the inflation - output gap trade …

by the announcement of inflation targeting in 1991 when estimating the effects of monetary policy. For instance, we find …

The days when secrecy and opacity were the bywords of central banking are gone. The advent of inflation targeting in …

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 …

positive if the central bank adopts closed-loop strategies that raise the real interest rate when inflation is above target … owing to fiscal deviations. More aggressive defence of the inflation target implies lower debt and higher welfare. Simple …

’ inflation expectations to their own lagged forecasts as well as proxies for the rational expectation forecasts. The model builds … in inflation expectations extensively documented in the literature. We estimate the model using data from two important … Survey of Consumer Expectations. We find that inflation expectations appear to correlate more strongly to measures of …

This paper examines the value of direct communication to households about inflation and the uncertainty around … inflation statistics. All types of information about inflation are effective at immediately managing inflation expectations …, with information about outlooks being more effective and more relevant than that about recent inflation and Bank targets …

participants are tasked with repeatedly forecasting inflation in a simple macroeconomic model featuring only the dynamics of … interest rates, inflation and inflation expectations. Average-inflation targeting can approximate the price path observed under … reflect the concern of the central bank for past inflation gaps. However, this depends on the exact specification of the …

We provide a comprehensive assessment of five monetary policy regimes-inflation targeting (IT), dual mandate (DM …), average inflation targeting under 4-period (AIT-4) and 10-period (AIT-10) horizons, price level targeting (PLT), and nominal … the inflation rate (e.g., AIT-10) are found to deliver significantly more stable economic outcomes than those that target …