December 14, 2007
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2338
result(s)
December 13, 2007
Central Bank Performance under Inflation Targeting
Gosselin examines and reports on the various factors that contribute to successful inflation targeting. Using a panel of 21 inflation-targeting countries over the period 1990Q1-2007Q2, Gosselin finds that the ability of central banks to hit their targets varies considerably. Some of these differences can be explained by exchange rate fluctuations, fiscal deficits, and differences in financial development. Others are explained by differences in the targeting framework itself and the manner in which it is implemented.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Central bank research,
Inflation targets,
Monetary policy framework
December 11, 2007
The Zero Bound on Nominal Interest Rates: Implications for Monetary Policy
One of the most important factors that must be considered if countries are thinking about lowering the target level of inflation much below 2 per cent is the zero interest bound. Targeting inflation rates that are too low, the authors note, may restrict the ability of monetary policy to respond to economic shocks by limiting the amount by which interest rates can be eased.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Inflation: costs and benefits,
Interest rates,
Monetary policy implementation
December 10, 2007
Inflation Targeting, Price-Level Targeting, and Fluctuations in Canada's Terms of Trade
Coletti and Lalonde compare inflation targeting and price-level targeting in the context of a small open economy subject to sizable terms-of-trade shocks. The authors summarize recent research that compares the ability of price-level targeting and inflation targeting to stabilize the macroeconomy when confronted with shocks similar to those experienced by Canada in recent years. Their preliminary results suggest that price-level targeting may represent a feasible alternative to traditional inflation targeting. Their article also provides insight into the direction of current research in this area at the Bank.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Central bank research,
Inflation and prices,
Monetary policy framework
Electronic Transactions as High-Frequency Indicators of Economic Activity
Staff Working Paper 2007-58
John Galbraith,
Greg Tkacz
Since the advent of standard national accounts data over 60 years ago, economists have traditionally relied on monthly or quarterly data supplied by central statistical agencies for macroeconomic modelling and forecasting.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles
JEL Code(s):
E,
E1,
E17,
E2,
E27,
E6,
E66
Uncertainty and the Specificity of Human Capital
Staff Working Paper 2007-57
Martin Gervais,
Igor Livshits,
Césaire Meh
This paper studies the choice between general and specific human capital. A trade-off arises because general human capital, while less productive, can easily be reallocated across firms.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models
JEL Code(s):
D,
D9,
D92,
J,
J2,
J24,
J4,
J41,
J6,
J62
Estimation and Inference by the Method of Projection Minimum Distance
Staff Working Paper 2007-56
Òscar Jordà,
Sharon Kozicki
A covariance-stationary vector of variables has a Wold representation whose coefficients can be semi-parametrically estimated by local projections (Jordà, 2005). Substituting the Wold representations for variables in model expressions generates restrictions that can be used by the method of minimum distance to estimate model parameters.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods
JEL Code(s):
C,
C3,
C32,
C5,
C53,
E,
E4,
E47
The Impact of Emerging Asia on Commodity Prices
Staff Working Paper 2007-55
Sylvie Morin,
Calista Cheung
Over the past 5 years, real energy and non-energy commodity prices have trended sharply higher. These relative price movements have had important implications for inflation and economic activity in both Canada and the rest of the world. China has accounted for the bulk of incremental demand for oil and many base metals over this period.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
International topics
JEL Code(s):
E,
E3,
F,
F4,
O,
O1,
O19,
Q,
Q1,
Q11
Tracking Canadian Trend Productivity: A Dynamic Factor Model with Markov Switching
Staff Discussion Paper 2007-12
Michael Dolega
The author attempts to track Canadian labour productivity over the past four decades using a multivariate dynamic factor model that, in addition to the labour productivity series, includes aggregate compensation and consumption information. Productivity is assumed to switch between two regimes (the high-growth state and the low-growth state) with different trend growth rates according to […]
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Productivity
JEL Code(s):
C,
C3,
C32,
O,
O4,
O5,
O51
Expenditure-Switching Effect and the Choice of Exchange Rate Regime
Staff Working Paper 2007-54
Wei Dong
The author investigates the quantitative importance of the expenditure-switching effect by developing and estimating a structural sticky-price model nesting both producer currency pricing (PCP) and local currency pricing (LCP) settings.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rate regimes,
International topics
JEL Code(s):
F,
F3,
F4