Bank of Canada review explores inflation target renewal
Four articles consider various elements of the central bank’s inflation targeting framework
The Bank of Canada has published a summary of its latest research focused on the country's inflation target, ahead of its renewal at the end of 2016.
One article in the review, released on May 16, charts the growing influence of downward nominal wage rigidity (DNWR) on average wage growth since the crisis.
A higher inflation target, the authors say, would help lower real wages without the difficulty of nominal wage cuts. This is not, however, enough for them to recommend a change.
"Even if DNWR
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