Canada's inflation success down to more than luck

The price level in Canada has strayed little from the path implied by the 2% inflation target because expectations and interest rates are determined in a way that is consistent with price-level-path targeting, research published by the international Monetary Fund finds.

Using econometric analysis with Bayesian estimation suggests that there is little chance that luck is behind the Bank of Canada maintaining inflation near the target, introduced in December 1994. The explanation that expectations

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: