We propose a method, based on the currency union model of Gali and Monacelli (2008), to determine whether a region belongs to an existing optimal currency area. The method involves assessing the predictability of regional inflation rates at medium term horizons. We apply the methods to the...

We examine the behaviour of national and provincial inflation in Canada under inflation targeting to determine the extent to which the inflation targeting regime adopted by the Bank of Canada in the 1990s has anchored inflation expectations. Inflation expectations are well anchored when there...

This study empirically documents that inflation is significantly more persistent when it is below the central bank target than otherwise, for inflation rates in five inflation targeting countries (Australia, New Zealand, Sweden, United States and the Euro- Area). The study uses a threshold...