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282
result(s)
Is There a Quality Bias in the Canadian CPI? Evidence from Micro Data
Staff Working Paper 2013-24
Oleksiy Kryvtsov
Rising consumer prices may reflect shifts by consumers to new higher-priced products, mostly for durable and semi-durable goods. I apply Bils’ (2009) methodology to newly available Canadian consumer price data for non-shelter goods and services to estimate how price increases can be divided between quality growth and price inflation.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Potential output
JEL Code(s):
E,
E3,
E31,
M,
M1,
M11,
O,
O4,
O47
Market Structure and Cost Pass-Through in Retail
Staff Working Paper 2013-5
Gee Hee Hong,
Nicholas Li
We examine the extent to which vertical and horizontal market structure can together
explain incomplete retail pass-through.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Monetary policy transmission
JEL Code(s):
E,
E3,
E30,
E31,
L,
L1,
L11,
L16
The Cyclicality of Sales, Regular and Effective Prices: Business Cycle and Policy Implications
Staff Working Paper 2013-1
Olivier Coibion,
Yuriy Gorodnichenko,
Gee Hee Hong
We study the cyclical properties of sales, regular price changes and average prices paid by consumers (“effective” prices) using data on prices and quantities sold for numerous retailers across many U.S. metropolitan areas.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
E,
E3,
E4,
E5
Forecasting Inflation and the Inflation Risk Premiums Using Nominal Yields
Staff Working Paper 2012-37
Bruno Feunou,
Jean-Sébastien Fontaine
We provide a decomposition of nominal yields into real yields, expectations of future inflation and inflation risk premiums when real bonds or inflation swaps are unavailable or unreliable due to their relative illiquidity.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Econometric and statistical methods,
Inflation and prices,
Interest rates
JEL Code(s):
E,
E4,
E43,
E47,
G,
G1,
G12
August 16, 2012
Measurement Bias in the Canadian Consumer Price Index: An Update
The consumer price index (CPI) is the most commonly used measure to track changes in the overall level of prices. Since it departs from a true cost-of-living index, the CPI is subject to four types of measurement bias—commodity substitution, outlet substitution, new goods and quality adjustment. The author updates previous Bank of Canada estimates of measurement bias in the Canadian CPI by examining these four sources of potential bias. He finds the total measurement bias over the 2005–11 period to be about 0.5 percentage point per year, consistent with the Bank’s earlier findings. Slightly more than half of this bias is caused by the fixed nature of the CPI basket of goods and services.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Inflation and prices,
Inflation targets
JEL Code(s):
E,
E3,
E31,
E5,
E52
Inflation and Growth: A New Keynesian Perspective
Staff Working Paper 2012-23
Robert Amano,
Thomas J. Carter,
Kevin Moran
The long-run relation between growth and inflation has not yet been studied in the context of nominal price and wage rigidities, despite the fact that these rigidities now figure prominently in workhorse macroeconomic models.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation: costs and benefits
JEL Code(s):
E,
E3,
E31,
E5,
E52,
O,
O3,
O31,
O4,
O42
The Sensitivity of Producer Prices to Exchange Rates: Insights from Micro Data
Staff Working Paper 2012-20
Shutao Cao,
Wei Dong,
Ben Tomlin
This paper studies the sensitivity of Canadian producer prices to the Canada-U.S. exchange rate. Using a unique product-level price data set, we estimate and analyze the impact of movements in the exchange rate on both domestic and export producer prices.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
Inflation and prices,
Market structure and pricing
JEL Code(s):
E,
E3,
E30,
F,
F3,
F31,
F4,
F41,
L,
L1,
L11
Commodities and Monetary Policy: Implications for Inflation and Price Level Targeting
Staff Working Paper 2012-16
Donald Coletti,
René Lalonde,
Paul Masson,
Dirk Muir,
Stephen Snudden
We examine the relative ability of simple inflation targeting (IT) and price level targeting (PLT) monetary policy rules to minimize both inflation variability and business cycle fluctuations in Canada for shocks that have important consequences for global commodity prices.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Inflation and prices,
International topics,
Monetary policy framework
JEL Code(s):
E,
E1,
E17,
E3,
E31,
E37,
E5,
E52,
F,
F4,
F41,
Q,
Q4,
Q43
May 17, 2012
Inflation Targeting: The Recent International Experience
In the years since the 2006 renewal of Canada’s inflation-control agreement, monetary policy regimes have faced significant shocks, including the global economic and financial crisis. This article reviews the recent experience with inflation targeting, including the debate about the appropriate role of monetary policy in maintaining financial stability. In the aftermath of the crisis, both […]
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Credibility,
Financial stability,
Inflation targets,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E5,
E52,
E58