We use narrative evidence along with a novel database of real-time data and forecasts from the Bank of Canada's staff … monetary policy in Canada. We show that it is crucial to take into account the break in the conduct of monetary policy caused … by the announcement of inflation targeting in 1991 when estimating the effects of monetary policy. For instance, we find …

The Bank of Canada (BoC) should carefully monitor the money supply to better predict inflation and track the … effectiveness of its monetary policy, according to a new C.D. Howe Institute report. In “Money Still Matters: How the Bank of Canada … Might Better Monitor Inflation,” author Mati Dubrovinsky suggests the BoC should also pay particular attention to the …

-based indicators are highly correlated with official inflation data and estimates of the output gap and improve the accuracy of … inflation forecasts. This suggests that these indicators could help central banks foresee inflationary pressures in the economy …