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Productivity growth and the Phillips curve in Canada

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  • Joseph W. Gruber

Abstract

This study examines the impact of productivity growth on the relationship between inflation and unemployment in Canada. Recently it has been suggested that higher productivity growth is responsible for a shift in the U.S. Phillips curve that occurred in the late 1990s. This paper examines whether the Phillips curve in Canada shifted in a manner similar to that of the United States, and the degree to which higher productivity growth explains this shift.

Suggested Citation

  • Joseph W. Gruber, 2003. "Productivity growth and the Phillips curve in Canada," International Finance Discussion Papers 787, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgif:787
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    References listed on IDEAS

    as
    1. Honda, Yuzo, 2000. "Some tests on the effects of inflation targeting in New Zealand, Canada, and the UK," Economics Letters, Elsevier, vol. 66(1), pages 1-6, January.
    2. Flint Brayton & John M. Roberts & John C. Williams, 1999. "What's happened to the Phillips curve?," Finance and Economics Discussion Series 1999-49, Board of Governors of the Federal Reserve System (U.S.).
    3. Laurence Ball & Robert Moffitt, 2001. "Productivity Growth and the Phillips Curve," NBER Working Papers 8421, National Bureau of Economic Research, Inc.
    4. Robert J. Gordon, 1998. "Foundations of the Goldilocks Economy: Supply Shocks and the Time-Varying NAIRU," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(2), pages 297-346.
    5. Tiff Macklemr & James Yetman, 2001. "Productivity growth and prices in Canada: what can we learn from the US experience?," BIS Papers chapters, in: Bank for International Settlements (ed.), Empirical studies of structural changes and inflation, volume 3, pages 29-48, Bank for International Settlements.
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    More about this item

    Keywords

    Inflation (Finance) - Canada; Phillips curve; Unemployment - Canada;
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