Flexible inflation forecast targeting: Evidence from Canada

Glenn D. Otto and Graham Voss

Canadian Journal of Economics/Revue canadienne d'économique, 2014, vol. 47, issue 2, 398-421

Abstract: We test whether the Bank of Canada pursues a flexible inflation forecast target, one that weights output growth as well as inflation. For the period 1996–2007, we find evidence that the Bank did effectively pursue such a target over the forecast horizon of 12 to 18 months. We find the relative weight that the Bank gives to output growth in its target to be positive and statistically significant within the range of 0.2 to 0.4. La poursuite de cibles de prévision d'inflation flexibles : résultats pour le Canada. On met au test la proposition à savoir si la Banque du Canada poursuit une cible flexible de prévision d'inflation—une cible qui tient compte de la croissance du produit tout autant que l'inflation. Pour la période 1996–2007, les résultats montrent que la Banque a poursuivi une cible sur un horizon de prévision de 12 à 18 mois. On montre que la pondération relative que la Banque donne à la croissance du produit dans son ciblage est positive et statistiquement significative dans l’éventail entre 0.2 et 0.4.

Date: 2014
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Citations: View citations in EconPapers (4)

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https://doi.org/10.1111/caje.12083

Related works:
Journal Article: Flexible inflation forecast targeting: Evidence from Canada (2014)
Working Paper: Flexible Inflation Forecast Targeting: Evidence from Canada (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:canjec:v:47:y:2014:i:2:p:398-421

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