We explain how the Bank of Canada's policy models capture the trade-off between output and inflation in Canada. We … inflation and provide new estimates of the trade-off using recently proposed methods. Finally, we contrast these estimates with …

rule that stabilizes output and inflation in an environment where endogenous boom-bust cycles in house prices can occur … borrowers are occasionally over-optimistic, the central bank should be less responsive to inflation, more responsive to output …-bust cycles in house prices, but prolongs inflation target horizons due to weak policy reactions to inflation fluctuations after …