National and Provincial Inflation in Canada : Experiences under Inflation Targeting

@inproceedings{Chaban2012NationalAP,
  title={National and Provincial Inflation in Canada : Experiences under Inflation Targeting},
  author={M. Chaban and Gudrun Mechthild Irmgard Vo\ss and David E. Giles},
  year={2012}
}
We examine the behaviour of national and provincial inflation in Canada under inflation targeting to determine the extent to which the inflation targeting regime adopted by the Bank of Canada in the 1990s has anchored inflation expectations. Inflation expectations are well anchored when there are no predictable departures of inflation from target at sufficiently distant horizons. To examine this condition, we consider the out of sample prediction of monthly inflation with specific focus on… CONTINUE READING