01882cas a2200277 a 4500 AALejournalIMF017141 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475541298 1018-5941 BD-DhAAL BD-DhAAL Obstfeld, Maurice. How to Improve Inflation Targeting in Canada / Maurice Obstfeld, Kevin Clinton, Ondra Kamenik, Douglas Laxton. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (43 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Routine publication of the forecast path for the policy interest rate (i.e. 'conventional forward guidance') would improve the transparency of monetary policy. It would also improve policy effectiveness through its influence on expectations, particularly when there is a risk of low inflation, and the policy rate is constrained by the effective lower bound. Model simulations indicate that a potent macroeconomic strategy, for returning the Canadian economy to potential, combines conventional forward guidance with a fiscal stimulus. As a response to the effective lower bound constraint, and the decline in the world equilibrium real interest rate, this strategy is preferable to raising the inflation target. Mode of access: Internet Clinton, Kevin. Kamenik, Ondra. Laxton, Douglas. IMF Working Papers; Working Paper ; No. 2016/192 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/192/001.2016.issue-192-en.xml IMF e-Library