E52 - Monetary Policy - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T10:03:45+00:00Estimating DSGE-Model-Consistent Trends for Use in Forecasting
https://www.bankofcanada.ca/2009/12/working-paper-2009-35/
The workhorse DSGE model used for monetary policy evaluation is designed to capture business cycle fluctuations in an optimization-based format. It is commonplace to log-linearize models and express them with variables in deviation-from-steady-state format.2009-12-15T14:59:43+00:00enEstimating DSGE-Model-Consistent Trends for Use in Forecasting2009-12-15Business fluctuations and cyclesEconometric and statistical methodsWorking Paper 2009-35 https://www.bankofcanada.ca/wp-content/uploads/2010/02/wp09-35.pdfEstimating DSGE-Model-Consistent Trends for Use in ForecastingJean-Philippe CayenMarc-André GosselinSharon KozickiDecember 2009CC3C32EE3E5E52Optimal Monetary Policy during Endogenous Housing-Market Boom-Bust Cycles
https://www.bankofcanada.ca/2009/11/working-paper-2009-32/
This paper uses a small-open economy model for the Canadian economy to examine the optimal Taylor-type monetary policy rule that stabilizes output and inflation in an environment where endogenous boom-bust cycles in house prices can occur.2009-11-15T14:42:23+00:00enOptimal Monetary Policy during Endogenous Housing-Market Boom-Bust Cycles2009-11-15Credit and credit aggregatesFinancial stabilityInflation targetsWorking Paper 2009-32 https://www.bankofcanada.ca/wp-content/uploads/2010/02/wp09-32.pdfOptimal Monetary Policy during Endogenous Housing-Market Boom-Bust CyclesHajime TomuraNovember 2009EE4E44E5E52Exchange Rate Pass-through and Monetary Policy: How Strong is the Link?
https://www.bankofcanada.ca/2009/10/working-paper-2009-29/
Several authors have presented reduced-form evidence suggesting that the degree of exchange rate pass-through to the consumer price index has declined in Canada since the early 1980s and is currently close to zero.2009-10-15T14:26:40+00:00enExchange Rate Pass-through and Monetary Policy: How Strong is the Link?2009-10-15Exchange ratesMonetary policy transmissionWorking Paper 2009-29 https://www.bankofcanada.ca/wp-content/uploads/2010/02/wp09-29.pdfExchange Rate Pass-through and Monetary Policy: How Strong is the Link?Stephen MurchisonOctober 2009EE5E52FF3F31F4F41Risk Premium Shocks and the Zero Bound on Nominal Interest Rates
https://www.bankofcanada.ca/2009/10/working-paper-2009-27/
There appears to be a disconnect between the importance of the zero bound on nominal interest rates in the real-world and predictions from quantitative DSGE models. Recent economic events have reinforced the relevance of the zero bound for monetary policy whereas quantitative models suggest that the zero bound does not constrain (optimal) monetary policy.2009-10-15T14:18:11+00:00enRisk Premium Shocks and the Zero Bound on Nominal Interest Rates2009-10-15Monetary policy frameworkWorking Paper 2009-27 https://www.bankofcanada.ca/wp-content/uploads/2010/02/wp09-27.pdfRisk Premium Shocks and the Zero Bound on Nominal Interest RatesRobert AmanoMalik ShukayevOctober 2009EE3E32E5E52Consumption, Housing Collateral, and the Canadian Business Cycle
https://www.bankofcanada.ca/2009/10/working-paper-2009-26/
Using Bayesian methods, we estimate a small open economy model in which consumers face limits to credit determined by the value of their housing stock. The purpose of this paper is to quantify the role of collateralized household debt in the Canadian business cycle.2009-10-15T10:50:34+00:00enConsumption, Housing Collateral, and the Canadian Business Cycle2009-10-15Business fluctuations and cyclesCredit and credit aggregatesMonetary policy transmissionWorking Paper 2009-26 https://www.bankofcanada.ca/wp-content/uploads/2010/02/wp09-26.pdfConsumption, Housing Collateral, and the Canadian Business CycleIan ChristensenPaul CorriganCaterina MendicinoShin-Ichi NishiyamaOctober 2009EE2E21E3E32E4E44E5E52RR2R21Resurrecting the Role of Real Money Balance Effects
https://www.bankofcanada.ca/2009/09/working-paper-2009-24/
I present a structural econometric analysis supporting the hypothesis that money is still relevant for shaping inflation and output dynamics in the United States. In particular, I find that real money balance effects are quantitatively important, although smaller than they used to be in the early postwar period.2009-09-15T10:36:19+00:00enResurrecting the Role of Real Money Balance Effects2009-09-15Business fluctuations and cyclesMonetary aggregatesMonetary policy transmissionWorking Paper 2009-24 https://www.bankofcanada.ca/wp-content/uploads/2010/02/wp09-24.pdfResurrecting the Role of Real Money Balance EffectsJosé DorichSeptember 2009EE3E31E32E5E52Adopting Price-Level Targeting under Imperfect Credibility in ToTEM
https://www.bankofcanada.ca/2009/05/working-paper-2009-17/
Using the Bank of Canada's main projection and policy-analysis model, ToTEM, this paper measures the welfare gains of switching from inflation targeting to price-level targeting under imperfect credibility. Following the policy change, private agents assign a probability to the event that the policy-maker will revert to inflation-targeting next period.2009-05-03T15:26:15+00:00enAdopting Price-Level Targeting under Imperfect Credibility in ToTEM2009-05-03Monetary policy frameworkMonetary policy implementationWorking Paper 2009-17https://www.bankofcanada.ca/wp-content/uploads/2010/02/wp09-17.pdfAdopting Price-Level Targeting under Imperfect Credibility in ToTEMGino CateauOleksiy KryvtsovMalik ShukayevAlexander UeberfeldtMay 2009EE3E31E5E52Real Effects of Price Stability with Endogenous Nominal Indexation
https://www.bankofcanada.ca/2009/05/working-paper-2009-16/
We study a model with repeated moral hazard where financial contracts are not fully indexed to inflation because nominal prices are observed with delay as in Jovanovic & Ueda (1997).2009-05-03T12:42:40+00:00enReal Effects of Price Stability with Endogenous Nominal Indexation2009-05-03Economic modelsFinancial marketsMonetary policy frameworkMonetary policy transmissionWorking Paper 2009-16 https://www.bankofcanada.ca/wp-content/uploads/2010/02/wp09-16.pdfReal Effects of Price Stability with Endogenous Nominal IndexationCésaire MehVincenzo QuadriniYaz TerajimaMay 2009EE2E21E3E31E4E44E5E52Heterogeneous Beliefs and Housing-Market Boom-Bust Cycles in a Small Open Economy
https://www.bankofcanada.ca/2009/05/working-paper-2009-15/
This paper introduces heterogeneous beliefs among households in a small open economy model for the Canadian economy. The model suggests that simultaneous boom-bust cycles in house prices, output, investment, consumption and hours worked emerge when credit-constrained mortgage borrowers expect that future house prices will rise and this expectation is neither shared by savers nor realized ex-post.2009-05-03T12:18:53+00:00enHeterogeneous Beliefs and Housing-Market Boom-Bust Cycles in a Small Open Economy2009-05-03Credit and credit aggregatesFinancial stabilityInflation targetsWorking Paper 2009-15 https://www.bankofcanada.ca/wp-content/uploads/2010/02/wp09-15.pdfHeterogeneous Beliefs and Housing-Market Boom-Bust Cycles in a Small Open EconomyHajime TomuraMay 2009EE4E44E5E52Optimal Policy under Commitment and Price Level Stationarity
https://www.bankofcanada.ca/2009/02/working-paper-2009-8/
This paper proposes a simple analytical method to determine the stationarity of an unnormalized variable from the solution to a normalized model i.e. a model whose variables must be expressed in relative terms or must be differenced for a solution to exist.2009-02-02T14:40:22+00:00enOptimal Policy under Commitment and Price Level Stationarity2009-02-02Monetary policy frameworkWorking Paper 2009-8 https://www.bankofcanada.ca/wp-content/uploads/2010/02/wp09-8.pdfOptimal Policy under Commitment and Price Level StationarityGino CateauFebruary 2009EE5E52E58