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Bank of Canada Working Paper

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RESEARCH - Bank of Canada Working Paper 'Inflation Expectations and Learning about Monetary Policy' by David Andolfatto, Scott Hendry, and Kevin Moran, October 2002. Various measures indicate that inflation expectations evolve sluggishly relative to actual inflation. In addition, they often fail conventional tests of unbiasedness. These observations are sometimes interpreted as evidence against rational expectations. The authors test this and find their simulated model is consistent with the

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