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November 6, 2025

Bank of Canada webcasts The John Kuszczak Memorial Lecture

On Thursday, November 6, 2025, the Bank of Canada will host its annual economic conference. This year’s theme is “Central Banking and the Future of Payments”. Academics, policy-makers, private sector economists and representatives from policy think tanks will be among those in attendance.
Content Type(s): Press, Media advisories
November 6, 2025

John Kuszczak Memorial Lecture 2025

The Opportunities and Challenges for AI Adoption — Address by Susan Athey, Stanford Graduate School of Business, with introductory remarks by Sharon Kozicki, Deputy Governor.

Non-homothetic Preferences and the Demand Channel of Inflation

Staff Working Paper 2025-30 Stephen Murchison
An alternative to the standard CES aggregator, based on non-homothetic household preferences, is proposed. Specifically, the elasticity of substitution between goods declines during periods of strong per-capita consumption and vice versa, giving firms an incentive to adjust their desired markup in response to the state of demand. Empirical evidence favouring a direct role for per-capita consumption demand in inflation determination for Canada is presented.
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