Showing 1 - 10 of 12
This paper outlines a strategic plan for the development of the fourth generation of Bank of Canada projection and policy analysis models. The plan features a new Canadian workhorse macroeconomic model as well as a suite of alternative models to better support a risk management approach to...
Persistent link: https://www.econbiz.de/10014392960
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...
Persistent link: https://www.econbiz.de/10009546871
Persistent link: https://www.econbiz.de/10013269451
This paper studies the steady-state costs of inflation in a general-equilibrium model with real per capita output growth and staggered nominal price and wage contracts. Our analysis shows that trend inflation has important effects on the economy when combined with nominal contracts and real...
Persistent link: https://www.econbiz.de/10005015264
The long-run relation between growth and inflation has not yet been studied in the context of nominal price and wage rigidities, despite the fact that these rigidities now figure prominently in workhorse macroeconomic models. We therefore integrate staggered price- and wage-setting into an...
Persistent link: https://www.econbiz.de/10013103408
The long-run relation between growth and inflation has not yet been studied in the context of nominal price and wage rigidities, despite the fact that these rigidities now figure prominently in workhorse macroeconomic models. We therefore integrate staggered price- and wage-setting into an...
Persistent link: https://www.econbiz.de/10009580023
Persistent link: https://www.econbiz.de/10003376175
Persistent link: https://www.econbiz.de/10003549223
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...
Persistent link: https://www.econbiz.de/10014064637
Persistent link: https://www.econbiz.de/10012628742