In this paper, we offer one possible way to estimate a key feature of the Bank of Canada's main macroeconomic model, the Quarterly Projection Model or QPM. The key feature which is the focus of this study is the so-called short-run equilibrium values or SREQs which link the dynamic portion of...

In this paper, we offer one possible way to estimate a key feature of the Bank of Canada s main macroeconomic model, the Quarterly Projection Model or QPM. The key feature which is the focus of this study is the so-called short-run equilibrium values or SREQs which link the dynamic portion of...

In this paper, we offer one possible way to estimate a key feature of the Bank of Canada’s main macroeconomic model, the Quarterly Projection Model or QPM. The key feature which is the focus of this study is the so-called "short-run equilibrium values" or SREQs which link the dynamic portion...

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 consequences for global commodity prices. We find that...