Hayo, Bernd; hayo@wiwi.uni-marburg.de; Neuenkirch, Matthias - In: Southern Economic Journal 78 (2011) 1, pp. 131-148
We explain Canadian target rate decisions using macroeconomic variables as well as Bank of Canada and Federal Reserve communication indicators. Econometrically, we employ an ordered probit model of a Taylor rule to explain and predict 60 target rate decisions between 1998 and 2006. We find that...