00000nam 2200000zi 4500 9.932285 CaOODSP 20240112152819 m o d f cr mn||||||||| 240110t20232023onca ob f000 0 eng d CaOODSP eng rda CaOODSP eng eng fre n-cn--- FB3-5/2023-63E-PDF Kostyshyna, Olena, author. The effects of communicating inflation uncertainty on household expectations / by Olena Kostyshyna and Luba Petersen. [Ottawa] : Bank of Canada = Banque du Canada, 2023. ©2023 1 online resource (ii, 79 pages) : colour illustrations. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2023-63 ISSN assigned to different series. "Last updated: December 29, 2023." Includes bibliographical references (pages 35-38). "This paper examines the value of direct communication to households about inflation and the uncertainty around inflation statistics. All types of information about inflation are effective at immediately managing inflation expectations, with information about outlooks being more effective and more relevant than that about recent inflation and Bank targets. We observe no downside to communicating about inflation with uncertainty on two measures: the level of expected inflation and uncertainty about it. On a third measure—probabilistic inflation expectations—we observe positive effects: they become more centered around the communicated ranges. However, communication with uncertainty weakens the link between expected inflation and spending plans, a key channel in the transmission of monetary policy. Communicating precise inflation outlooks can lengthen the effects of these communications on households"--Abstract, page ii. Includes abstracts in English and French. Inflation (Finance) Canada Econometric models. Inflation targeting Canada Econometric models. Rational expectations (Economic theory) Canada Econometric models. Uncertainty Econometric models. Inflation Canada Modèles économétriques. Ciblage d'inflation Canada Modèles économétriques. Anticipations rationnelles (Théorie économique) Canada Modèles économétriques. Incertitude Modèles économétriques. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 2023-63. (CaOODSP)9.806221 PDF 2.07 MB https://publications.gc.ca/collections/collection_2024/banque-bank-canada/FB3-5-2023-63-eng.pdf