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July 13, 2009

Business Outlook Survey - Summer 2009

The results of the summer survey indicate that businesses foresee an improvement in the economic outlook. In particular, the balances of opinion on both future sales and employment have turned positive. Nevertheless, firms expect their activity to recover only gradually, and they continue to be cautious regarding investment.

Structural Inflation Models with Real Wage Rigidities: The Case of Canada

Staff Working Paper 2009-21 Jean-Marie Dufour, Lynda Khalaf, Maral Kichian
Real wage rigidities have recently been proposed as a way of building intrinsic persistence in inflation within the context of New Keynesian Phillips Curves. Using two recent illustrative structural models, we evaluate empirically the importance of real wage rigidities in the data and the extent to which such models provide useful information regarding price stickiness.
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