Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/301924 
Year of Publication: 
2024
Series/Report no.: 
Bank of Canada Staff Discussion Paper No. 2024-7
Publisher: 
Bank of Canada, Ottawa
Abstract: 
We explain how the Bank of Canada's policy models capture the trade-off between output and inflation in Canada. We start by briefly revisiting the determinants of the New Keynesian Phillips curve. Next, we provide an overview of the Phillips curves that are currently embedded in the two main policy models the Bank uses for macroeconomic projections and analysis, known for short as ToTEM and LENS. We then discuss the challenges in identifying the trade-off between output and inflation and provide new estimates of the trade-off using recently proposed methods. Finally, we contrast these estimates with the ones in the Bank's policy models.
Subjects: 
Business fluctuations and cycles
Econometric and statistical methods
Inflation and prices
Monetary policy transmission
JEL: 
E31
E52
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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