Find Bank of Canada research by keyword, author, content type, JEL code, topic or date of publication.
Receive notification by email whenever new research is added to the website.
369
result(s)
Central Bank Performance under Inflation Targeting
Staff Working Paper 2007-18
Marc-André Gosselin
The inflation targeting (IT) regime is 17 years old. With practice of IT now in more than 21 countries, there is enough evidence gathered to take stock of the IT experience. In this paper, we analyze the inflation record of IT central banks.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Inflation targets,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E5,
E52,
E58
Monetary Policy Committees in Action: Is There Room for Improvement?
Staff Working Paper 2007-6
Philipp Maier
More than 80 central banks use a committee to take monetary policy decisions. The composition of the committee and the structure of the meeting can affect the quality of the decision making.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Monetary policy framework
JEL Code(s):
C,
C9,
C92,
D,
D7,
D70,
E,
E5,
E58
Time-Consistent Control in Non-Linear Models
Staff Working Paper 2007-3
Steve Ambler,
Florian Pelgrin
We show how to use optimal control theory to derive optimal time-consistent Markov-perfect government policies in nonlinear dynamic general equilibrium models, extending the result of Cohen and Michel (1988) for models with quadratic objective functions and linear dynamics. We replace private agents' costates by flexible functions of current states in the government's maximization problem.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Fiscal policy,
Monetary policy framework
JEL Code(s):
C,
C6,
C63,
E,
E6,
E61,
E62
December 20, 2006
Why Monetary Policy Matters: A Canadian Perspective
This article provides answers to several key questions about Canadian monetary policy. First, what is monetary policy? Second, why does the Bank of Canada focus on the control of inflation rather than other macroeconomic variables? Third, how do the Bank's actions influence the rate of inflation? And, finally, how can monetary policy deliver genuine and significant benefits to society?
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Business fluctuations and cycles,
Inflation: costs and benefits,
Monetary policy framework
Survey-Based Estimates of the Term Structure of Expected U.S. Inflation
Staff Working Paper 2006-46
Sharon Kozicki,
P. A. Tinsley
Surveys provide direct information on expectations, but only short histories are available at quarterly frequencies or for long-horizon expectations.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Inflation targets,
Monetary policy and uncertainty
JEL Code(s):
E,
E3,
E5
An Optimized Monetary Policy Rule for ToTEM
Staff Working Paper 2006-41
Jean-Philippe Cayen,
Amy Corbett,
Patrick Perrier
The authors propose a monetary policy rule for the Terms-of-Trade Economic Model (ToTEM), the Bank of Canada's new projection and policy-analysis model for the Canadian economy.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
E,
E5,
E52
October 8, 2006
Modelling Financial Channels for Monetary Policy Analysis
The Bank of Canada considers a wide range of information and analysis before making a monetary policy decision and uses carefully articulated models to produce economic projections and to examine alternative scenarios. This article describes an ongoing research agenda at the Bank to develop models in which financial variables play an active role in the transmission of monetary policy actions to economic activity. Such models can help to analyze information from the financial side of the economy and to provide an overall view of the implications of financial developments for the current economic outlook. The authors also explain how this research can help address other issues relevant to the objectives of monetary policy, including how asset-price movements should be taken into account in the monetary policy framework.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Credit and credit aggregates,
Economic models,
Monetary policy transmission
Survey of Price-Setting Behaviour of Canadian Companies
Staff Working Paper 2006-35
David Amirault,
Carolyn Kwan,
Gordon Wilkinson
In many mainstream macroeconomic models, sticky prices play an important role in explaining the effects of monetary policy on the economy.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Monetary policy transmission
JEL Code(s):
D,
D4,
D40,
E,
E3,
E30,
L,
L1,
L11
June 21, 2006
Credibility with Flexibility: The Evolution of Inflation-Targeting Regimes, 1990–2006
Beginning with a review of the adoption of inflation targeting in a broad group of countries, Paulin focuses on changes in the design of inflation-targeting frameworks in light of fifteen years of accumulated experience. Included in the discussion are the use of numerical targets and ranges, the policy horizon, supporting institutional policy structures, and communication, including the publication of forecasts. A recurring theme is how much flexibility an inflation-targeting regime allows. The article concludes that the changes made to the frameworks have been relatively modest since their adoption, but in concert with the improved credibility that has resulted from central banks meeting their inflation-control targets, they have allowed an increasingly nuanced response to economic shocks.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Credibility,
Inflation targets,
Monetary policy framework