variability in Canada from 1961:1 to 1995:4. Despite the substantial variation in inflation over this period, we find little …One of the costs of high levels of inflation may be misperceptions of relative prices and excessive volatility in … sectoral output. This paper, therefore, examines the relationship between the level of inflation and sectoral output growth …

current estimates of the output gap in Canada. We begin by assembling a new data base of quarterly realtime output estimates …