In Canada, targeting the inflation rate was intended as a temporary measure on a journey to price-level stability, but … account, changing beliefs about the stability or otherwise of ongoing inflation, the capacity of a flexible exchange rate to … rate and money growth in influencing economic outcomes are emphasised. Today’s standard DSGE approach to modelling …

Keynesian model with heterogeneous expectations. We explicitly focus on the "anchoring" of expectations that is modeled as the … prevent waves of pessimism and exclude near unit root dynamics, even when expectations are unanchored. However, as shocks … of expectations evolves endogenously, the anchoring of expectations at the time the bad shocks hit is crucial in …

In Canada, targeting the inflation rate was intended as a temporary measure during a transition to price … following account, changing beliefs about the stability or otherwise of ongoing inflation, the capacity of a flexible exchange … unemployment rate and money growth in influencing economic outcomes are also discussed. Today's standard theoretical approach to …