The paper examines the transmission of inflation in Canada during 1962-1980 using an empirical methodology which is very flexible in determining the direction of casuality and the shape of distributed lag effects. The paper finds that US monetary growth exerted an important effect on Canadian inflation during both fixed and flexible exchange-rate periods. The evidence also shows that Canadian monetary growth has remained linked to US monetary growth under the present flexible exchange-rate regime.

Additional Metadata
Persistent URL dx.doi.org/10.1016/0261-5606(83)90013-X
Journal Journal of International Money and Finance
Citation
Choudhri, E.U. (1983). The transmission of inflation in a small economy: an empirical analysis of the influence of US monetary disturbances on Canadian inflation, 1962-1980. Journal of International Money and Finance, 2(2), 167–178. doi:10.1016/0261-5606(83)90013-X