October 14, 2007
Inflation and prices
-
-
The Direct Effect of China on Canadian Consumer Prices: An Empirical Assessment
The author investigates the direct effect of Chinese imported goods on consumer prices in Canada. On average, over the 2001–06 period, the direct effect of consumer goods imported from China is estimated to have reduced the inflation rate by about 0.1 percentage points per year. This disinflationary effect is due to two causes: first, the […] -
Gold Prices and Inflation
Using data for 14 countries over the 1994 to 2005 period, we assess the leading indicator properties of gold at horizons ranging from 6 to 24 months. -
Oil Price Movements and the Global Economy: A Model-Based Assessment
We develop a five-region version (Canada, an oil exporter, the United States, emerging Asia and Japan plus the euro area) of the Global Economy Model (GEM) encompassing production and trade of crude oil, and use it to study the international transmission mechanism of shocks that drive oil prices. -
Micro Foundations of Price-Setting Behaviour: Evidence from Canadian Firms
How do firms adjust prices in the marketplace? Do they tend to adjust prices infrequently in response to changes in market conditions? If so, why? These remain key questions in macroeconomics, particularly for central banks that work to keep inflation low and stable. -
Does Indexation Bias the Estimated Frequency of Price Adjustment?
We assess the implications of price indexation for estimated frequency of price adjustment in sticky price models of business cycles. These models predominantly assume that non-reoptimized prices are indexed to lagged or average inflation. -
Survey-Based Estimates of the Term Structure of Expected U.S. Inflation
Surveys provide direct information on expectations, but only short histories are available at quarterly frequencies or for long-horizon expectations. -
November 1, 2006
Renewal of the Inflation-Control Target (November 2006)
Commentary and technical data relating to the 2006 target renewal. -
Survey of Price-Setting Behaviour of Canadian Companies
In many mainstream macroeconomic models, sticky prices play an important role in explaining the effects of monetary policy on the economy. -
The Macroeconomic Effects of Non-Zero Trend Inflation
The authors study the macroeconomic effects of non-zero trend inflation in a simple dynamic stochastic general-equilibrium model with sticky prices.