policy. For example, if the Bank of Canada is targeting a 2 per cent inflation rate, and if the Bank's instrument takes eight … quarters to affect inflation, then deviations of inflation from 2 per cent should be uncorrelated with the Bank's information … set lagged eight quarters. We show that there was a major change in the Bank's objectives near the time when formal …

of bank lending, it may lead to debt-deflation. Finally, we demonstrate that the central bank alone can make only a …

Under a conventional policy rule, a central bank adjusts its policy rate linearly according to the gap between … central bank controls inflation aggressively when inflation is far from its target, but concentrates more on output …