Uncertainty and monetary policy
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16 June 2008 A Money and Credit Real-Time Database for Canada
Model-based forecasts of important economic variables are part of the range of information considered for monetary policy decision making. -
Price Level versus Inflation Targeting under Model Uncertainty
The purpose of this paper is to make a quantitative contribution to the inflation versus price level targeting debate. It considers a policy-maker that can set policy either through an inflation targeting rule or a price level targeting rule to minimize a quadratic loss function using the actual projection model of the Bank of Canada (ToTEM).