E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
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Inflation and the Tax System in Canada: An Exploratory Partial-Equilibrium Analysis
This paper reports on an exploratory application to Canadian data of an approach pioneered by Martin Feldstein (1997, 1999). Feldstein finds that even at low inflation rates there are costs arising from the distortions introduced by the interaction of inflation with the taxation of income from capital (capital gains, dividends, and interest) in a less-than-perfectly-indexed tax system. -
Identifying Policy-makers' Objectives: An Application to the Bank of Canada
In this paper, we develop a new way to test hypotheses about policy-makers' targets, and we implement that test for Canadian monetary policy.