We examine the relative ability of simple inflation targeting (IT) and price level targeting (PLT) monetary policy … rules to minimize both inflation variability and business cycle fluctuations in Canada for shocks that have important … persistent cost-push pressures in the economy leading to a significant deterioration in the inflation - output gap trade …

This paper analyses the post-pandemic inflation dynamics in Canada using a behavioral macroeconomic model of the Bank …-pandemic inflation can be explained by these simple heuristics and traced back to the lifting of economic restrictions in mid-2020 …, triggering demand-pull inflation. This result suggests that the cost-push inflation in 2021 and beyond actually originated from a …

), in a world that is increasingly digital, and of the effectiveness of NIRP, which is not being properly transmitted by …

an estimated DSGE model. It finds that the disconnect is due primarily to the muted reaction of inflation to cost … inflation stabilization also appears to have played some role by reducing the impact of demand shocks on the real economy. The …

and sometimes the unconditional means of the nominal rate, inflation and the output gap are strongly affected by …

inflation targeting result in a binding lower bound one-fourth of the time as well as inflation and output exhibiting large … purchases. Makeup strategies, especially average inflation targeting with a long averaging window, perform better than inflation …

price business cycle models. We find that modelling firm-specific capital markets greatly reduces the response of inflation … a less volatile, as well as more persistent series for inflation than those which assume an economy wide market for …