Flexible Inflation Forecast Targeting: Evidence from Canada
Graham Voss () and
Glenn D. Otto
No 1101, Department Discussion Papers from Department of Economics, University of Victoria
We examine models of flexible inflation forecast targeting. The target criteria from these models restrict the conditionally expected paths of inflation and output targeted by the central bank. We estimate and test these criteria for Canada, an early adopter of inflation targeting. We show that the Bank of Canada systematically balances inflation and economic activity over the medium term policy horizon consistent with flexible inflation targeting. Further, our results establish the usefulness of flexible inflation targeting rules as an alternative to standard Taylor rules.
Keywords: monetary policy; inflation; flexible inflation targeting (search for similar items in EconPapers)
JEL-codes: E31 E58 (search for similar items in EconPapers)
Note: ISSN 1914-2838
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Journal Article: Flexible inflation forecast targeting: Evidence from Canada (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:vic:vicddp:1101
Access Statistics for this paper
More papers in Department Discussion Papers from Department of Economics, University of Victoria PO Box 1700, STN CSC, Victoria, BC, Canada, V8W 2Y2. Contact information at EDIRC.
Bibliographic data for series maintained by Graham Voss ().