Inflation and prices

• Inflation, Learning and Monetary Policy Regimes in The G-7 Economies

  Staff Working Paper 1995-6 Nicholas Ricketts, David Rose

  In this paper, the authors report estimates of two- and three-state Markov switching models applied to inflation, measured using consumer price indexes, in the G-7 countries. They report tests that show that two-state models are preferred to simple one-state representations of the data, and argue that three-state representations are more satisfactory than two-state representations for […]

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices

• Changes in the Inflation Process in Canada: Evidence and Implications

  Staff Working Paper 1995-5 Doug Hostland

  The Canadian economy is currently in transition from a period of disinflation to one with a very low and relatively stable inflation rate. Against this background, the author asks whether reduced-form parameters should be expected to be invariant to changes in the inflation process. This raises two empirical issues. The first relates to whether shifts […]

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices

• Deriving Agents' Inflation Forecasts from the Term Structure of Interest Rates

  Staff Working Paper 1995-1 Christopher Ragan

  In this paper, the author uses the term structure of nominal interest rates to construct estimates of agents' expectations of inflation over several medium-term forecast horizons. The Expectations Hypothesis is imposed together with the assumption that expected future real interest rates are given by current real rates. Under these maintained assumptions, it is possible to […]

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices, Interest rates