Household expectations help flesh out inflation picture, research finds
Research published in the latest Bank of Canada review
Studying the behaviour of household inflation expectations since the financial crisis "provides a better understanding of the evolution of global inflation during this period," according to an article in the latest Bank of Canada review, published May 14.
Inflation dynamics in the post-crisis period, by Christian Friedrich and Marc-André Gosselin, argues that inflation models should be "regularly supplemented" with additional sources of information as the Phillips curve relationship is "subject
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