Inflation and prices

• Measurement Biases in the Canadian CPI

  Technical Report No. 64 Allan Crawford

  The consumer price index (CPI) may be an imperfect measure of changes in the cost of living owing to measurement biases known as commodity substitution bias, new goods bias, quality bias and outlet substitution bias. When the sum of these individual biases is positive, the rate of change in the CPI overstates the increase in […]

  Content Type(s): Staff research, Technical reports Topic(s): Inflation and prices JEL Code(s): E, E3, E31

• Monetary Policy, Uncertainty and the Presumption of Linearity

  Technical Report No. 63 Douglas Laxton, David Rose, Robert Tetlow

  This report shows that extreme conditions and volatility in markets are much more likely to result from systematic policy errors in gauging and responding to inflationary pressures in an economy than from unfortunate random shocks. We describe a simple model that incorporates the key features of the policy control process. We use two versions of […]

  Content Type(s): Staff research, Technical reports Topic(s): Economic models, Inflation and prices, Monetary policy and uncertainty JEL Code(s): E, E5, E52