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nature of the monetary transmission mechanism, and it is sometimes suggested that this could threaten the ability of national … the form of the three structural equations of a basic model of the monetary transmission mechanism: the LM equation, the …, final goods markets, and factor markets for the form of each of these parts of the monetary transmission mechanism, and find …
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In a sticky-price model where firms finance their production inputs, there is both a lower and an upper bound on the central bank's inflation response necessary to rule out the possibility of self-fulfilling inflation expectations. This paper shows that real wage rigidities decrease this upper...
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Since 1991, the Bank of Canada has had an inflation‐targeting (IT) framework established by a joint agreement between the Bank and the Government of Canada. The framework is reviewed every five years as part of the process for renewing the inflation‐control agreement. This discussion paper...
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