Paul Masson

Author

Staff working papers

Commodities and Monetary Policy: Implications for Inflation and Price Level Targeting

Staff Working Paper 2012-16 Donald Coletti, René Lalonde, Paul Masson, Dirk Muir, Stephen Snudden
We examine the relative ability of simple inflation targeting (IT) and price level targeting (PLT) monetary policy rules to minimize both inflation variability and business cycle fluctuations in Canada for shocks that have important consequences for global commodity prices.
Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Inflation and prices, International topics, Monetary policy framework JEL Code(s): E, E1, E17, E3, E31, E37, E5, E52, F, F4, F41, Q, Q4, Q43

Are Bygones not Bygones? Modeling Price Level Targeting with an Escape Clause and Lessons from the Gold Standard

Staff Working Paper 2008-27 Paul Masson, Malik Shukayev
Like the gold standard, price level targeting (PT) involves not letting past deviations of inflation be bygones; both regimes return the price level (or price of gold) to its target. The experience of suspension of the gold standard in World War I, resumption in the 1920s (for some countries at a different parity), and final abandonment is reviewed.
Content Type(s): Staff research, Staff working papers Topic(s): Credibility, Monetary policy framework JEL Code(s): E, E3, E31, E5, E52

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Technical reports

La non-neutralité du mode de financement du gouvernement

Technical Report No. 36 Paul Masson
It has long been a subject of debate among economists as to whether different methods of financing government expenditures—issuing bonds or raising taxes—will bring about different effects on the economy. The purpose of this technical report is to quantify the substitution effects brought about by tax rate changes and to see to what extent they […]
Content Type(s): Staff research, Technical reports Topic(s): Debt management JEL Code(s): H, H6, H60

Asset Stocks and the Use of Monetary and Fiscal Policies to Reduce Inflation

Technical Report No. 35 Paul Masson
This paper analyzes the dynamic behaviour of a country's economy under different policy regimes, by examining the cyclical effects that occur when certain intermediate macroeconomic targets are adopted. To highlight the differences in the adjustment paths that result, the study deliberately limits policy choice: either money supply or nominal income as targets, and either real […]
Content Type(s): Staff research, Technical reports Topic(s): Fiscal policy, Inflation and prices, Monetary policy and uncertainty JEL Code(s): E, E3, E31, E6, E63

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Bank publications

Bank of Canada Review articles

June 19, 2008

China's Integration into the Global Financial System

Bank of Canada Review - Summer 2008 Paul Masson, Wendy Dobson, Robert Lafrance
Despite having the world's largest GDP when measured in terms of purchasing-power parities, the third-largest share in world exports, and the world's largest foreign exchange reserves, China has only a minor role in the global financial system. Its banks have a modest international presence; China's currency, the renminbi, is virtually not used outside the country; and Chinese capital markets are not a significant source of financing for foreign borrowers. China's modest level of integration into the global financial system is explained by the emphasis given to domestic policy priorities. As the Chinese economy matures, and as reforms strengthen the domestic financial system, China will become more important in global financial markets. Changes are already occurring as China's financial might is being channeled towards overseas investments, and the authorities have committed to greater exchange rate flexibility. These changes will facilitate integration into the global financial system. In this article, the authors describe the current situation and speculate on the future evolution of Chinese financial institutions and markets.
Content Type(s): Publications, Bank of Canada Review articles Topic(s): Exchange rate regimes, Financial markets, International topics

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