Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund, issuing body.
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| ISBN: | 1513514997
9781513514994
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| Notes: | Includes bibliographical references.
Online resource; title from PDF title page (EBSCO, viewed February 12, 2020).
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| Summary: | Against the backdrop of an ongoing review of the inflation-targeting framework, this paper examines the real-time inflation forecasts of the Bank of Canada with the aim of identifying potential areas for improvement. Not surprisingly, the results show that errors in forecasting non-core inflation (commodity prices et cetera) are found to be the largest contributors to overall inflation forecast errors. Perhaps more importantly, relatively small core inflation forecast errors appear to mask large and offsetting errors related to the output gap and the policy interest rate, partly reflecting a tendency to overestimate the neutral nominal policy rate in real time. Faced with these uncertainties, the Governing Council's gradual approach to changing its policy settings appears to have served it well.
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| Other form: | Print version: Matheson, Troy D. How to Improve Inflation Forecasting in Canada. Washington, D.C. : International Monetary Fund, ©2019 9781513509396
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