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(Australia, Canada, and New Zealand) place somewhat different emphasis on inflation than on other factors (e.g., output gap). We …
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This paper analyses the impact of central bank interven-tions in the inflation targeting regime. The results of empirical stud-ies in this paper show if there is a shock of the exchange rate, which would lead to depreciation of the exchange rate, a central bank may decide to mush instability on...
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In a large sample of countries across different geographic regions and over a long period of time, we find limited country- and variable-specific effects of central bank transparency on forecast accuracy and their dispersion among a large set of professional forecasts of financial and...
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There has been much talk in the popular press about the difficulty of attaining credibility in the bond markets for the low-inflation policies that have been adopted by a number of central banks in recent years. This credibility problem is particularly severe for those countries that have a...
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Commentary reviews some of the reasons for this in the Canadian and American contexts. The relative mildness of Canada's 2008 …-2009 recession convinced the Bank of Canada that inflation-targeting can work in troubled as well as tranquil times. Meanwhile, the … banks to ignore past inflation shocks and engage in fine-tuning of the business cycle. The Bank of Canada shares the Fed …
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's preference parameters for Canada, Sweden, and the United Kingdom are statistically different from the one implied by the commonly …
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