Since 1991, the Bank of Canada has had an inflation‐targeting (IT) framework established by a joint agreement between … inflation‐control agreement. This discussion paper summarizes some interim results from Bank staff analysis done for the August … analysis later in 2021. The core of the current framework-the 2 percent inflation target-has remained unchanged since 1995 …

. “Rents” in the CPI have jumped up by as much as 35% in certain quarters, hugely overestimating the true inflation. This … vitiates any use of the core CPI for monetary policy including inflation targeting. This will-o’-wisp that the RBI chased, had …

Bank of Canada research done prior to the most recent renewal of the inflation-control agreement in 2011 concluded that … future than they were during the first two decades of inflation targeting. As a consequence, the probability of being … a higher inflation target. …

committed to low inflation has no alternative. Higher inflation targets, instead, permit both full employment and high …

's depreciation, higher stock prices, and higher corporate profits. Meanwhile, the impacts on aggregate demand and inflation have not … underlying inflation approaches 2%. Leaving room for additional monetary accommodation in the event of severe recession is also …

match Canadian macroeconomic data since Canada's adoption of inflation targeting. We use the model to provide a quantitative … assessment of the macroeconomic impact of flexible inflation targeting and some alternative monetary policy regimes. These … alternative monetary policy regimes are average-inflation targeting, price-level targeting and nominal gross domestic product …

. Furthermore, the proposed approach sheds new light on the implications of policies such as inflation-targeting and those leading …

We study the effects of positive steady-state inflation in New Keynesian models subject to the zero bound on interest … rates. We derive the utility-based welfare loss function taking into account the effects of positive steady-state inflation … and show that steady-state inflation affects welfare through three distinct channels: steady-state effects, the magnitude …

inflation targeting affected households' expectations. Starting with the day of the announcement, there is a very small uptick … different. When we provide randomly selected households with pertinent information about average inflation targeting, their … expectations still do not change in a different way than when households are provided with information about traditional inflation …

central bank's inflation response necessary to rule out the possibility of self-fulfilling inflation expectations. This paper … their inputs (i.e. Markov-Switching) then inflation targeting interest rate rules are often found to result in indeterminacy … rule can alleviate this indeterminacy and anchor inflation expectations. Whether the money growth target should be a …