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...

The menu-cost models of price adjustment developed by Ball and Mankiw (1994; 1995) predict that short-run movements in inflation should be positively related to the skewness and the variance of the distribution of disaggregated relative-price shocks in each period. We test these predictions on...