Does the Barro-Gordon model explain the behaviour of inflation in Canada?

This paper investigates whether the model proposed by Barro and Gordon could explain the behavior of inflation in Canada. Using quarterly and annual Canadian data, I test the restrictions imposed by Barro and Gordon's theory of time-consistent monetary policy on a bivariate time-series model for inflation and unemployment. The results show that the data are not fully consistent with the theory's implications for the long-run behavior of the two variables.