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 … inflation targeting arrived on the scene only after the Canadian regime was well established. …

this has led some economists to recommend that Canada increase its inflation rate. Underlying this view is the idea that …A recent paper has suggested there might be a trade-off between inflation and unemployment at low inflation rates and …, because firms are reluctant to cut workers' nominal wages, a moderate amount of inflation can be used to facilitate needed …

This paper analyses the post-pandemic inflation dynamics in Canada using a behavioral macroeconomic model of the Bank … of Canada. Two crucial behavioral assumptions in line with empirical evidence characterize the model: firms make price …-pandemic inflation can be explained by these simple heuristics and traced back to the lifting of economic restrictions in mid-2020 …