{"id":10933,"date":"2010-05-20T13:28:41","date_gmt":"2010-05-20T17:28:41","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=10933"},"modified":"2010-05-20T13:28:41","modified_gmt":"2010-05-20T17:28:41","slug":"boc-releases-spring-2010-review","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=10933","title":{"rendered":"BoC Releases Spring 2010 Review"},"content":{"rendered":"<p>The Bank of Canada <a href=\"http:\/\/www.bankofcanada.ca\/en\/review\/rev_spring2010.html\">has released<\/a> the <a href=\"http:\/\/www.bankofcanada.ca\/en\/review\/spring10\/review_spring10.pdf\">Bank of Canada Review &#8211; Spring 2010<\/a> with feature articles:<\/p>\n<ul>\n<li>Crude Oil Futures: A Crystal Ball?\n<li>Inflation Expectations and the Conduct of Monetary Policy: A Review of Recent Evidence and Experience\n<li>Monetary Policy Rules in an Uncertain Environment\n<li>An Uncertain Past: Data Revisions and Monetary Policy in Canada<\/ul>\n<p>The second article notes:<\/p>\n<blockquote><p>In the Canadian context, Christensen, Dion, and Reid (2004) find that the BEIR in Canada is not a reliable measure of inflation expectations because of the maturity and liquidity characteristics of Real Return Bonds. Simply, Canada\u2019s Real Return Bonds have a 30-year maturity and are considerably less liquid than conventional 30-year bonds, which leads to frequent distortions in the measure of expected inflation. For the United States, Ang, Bekaert, and Wei (2007) find that survey data outperform market-based measures, times-series ARIMA models, and regressions using data on real economic activity. Consequently, the most recent evidence suggests that surveys may be a more reliable guide to inflation expectations for the United States and Canada.<\/p><\/blockquote>\n<p>The references are to <\/p>\n<ul>\n<li>Christensen, I., F. Dion, and C. Reid. 2004. \u201cReal Return Bonds, Inflation Expectations, and the Break-Even Inflation Rate.\u201d Bank of Canada Working Paper No. 2004\u201343.\n<li>Ang, A., G. Bekaert, and M. Wei. 2007. \u201cDo Macro Variables, Asset Markets, or Surveys Forecast Inflation Better?\u201d Journal of Monetary Economics 54 (4): 1163\u20131212.<\/ul>\n<p>Christensen, Dion and Reid also published in the BoC Review of Autumn 2004; this paper has been <a href=\"http:\/\/www.prefblog.com\/?p=6630\">summarized on PrefBlog<\/a>.<\/p>\n<p>The paper by Ang, Bekaert &#038; Wei has not been reviewed here, but it has been referenced in <a href=\"http:\/\/www.prefblog.com\/?p=4618\">Term Premia on Real-Return Bonds in the UK<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Bank of Canada has released the Bank of Canada Review &#8211; Spring 2010 with feature articles: Crude Oil Futures: A Crystal Ball? Inflation Expectations and the Conduct of Monetary Policy: A Review of Recent &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-10933","post","type-post","status-publish","format-standard","hentry","category-interesting-external-papers"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/10933","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10933"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/10933\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}