E52 - Monetary Policy - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T00:31:37+00:00Monetary Policy and Government Debt Dynamics Without Commitment
https://www.bankofcanada.ca/2019/12/staff-working-paper-2019-52/
I show that maturity considerations affect the optimal conduct of monetary and fiscal policy during a period of government debt reduction. I consider a New Keynesian model and study a dynamic game of monetary and fiscal policy authorities without commitment, characterizing the incentives that drive the choice of interest rate.2019-12-30T09:16:41+00:00enMonetary Policy and Government Debt Dynamics Without Commitment2019-12-30Fiscal policyMonetary policyStaff Working Paper 2019-52https://www.bankofcanada.ca/wp-content/uploads/2019/12/swp2019-52.pdfMonetary Policy and Government Debt Dynamics Without CommitmentDmitry MatveevDecember 2019EE5E52E6E62E63Furor over the Fed : Presidential Tweets and Central Bank Independence
https://www.bankofcanada.ca/2019/12/staff-analytical-note-2019-33/
We illustrate how market data can be informative about the interactions between monetary and fiscal policy. Federal funds futures are private contracts that reflect investor’s expectations about monetary policy decisions.2019-12-18T12:14:31+00:00enFuror over the Fed : Presidential Tweets and Central Bank Independence2019-12-18A Comprehensive Evaluation of Measures of Core Inflation in Canada: An Update
https://www.bankofcanada.ca/2019/09/staff-discussion-paper-2019-9/
We provide an updated evaluation of the value of various measures of core inflation that could be used in the conduct of monetary policy. We find that the Bank of Canada’s current preferred measures of core inflation—CPI-trim, CPI-median and CPI-common—continue to outperform alternative core measures across a range of criteria.2019-09-04T13:24:39+00:00enA Comprehensive Evaluation of Measures of Core Inflation in Canada: An Update2019-09-04Inflation and pricesMonetary policy frameworkStaff Discussion Paper 2019-9https://www.bankofcanada.ca/wp-content/uploads/2019/09/sdp2019-9.pdfA Comprehensive Evaluation of Measures of Core Inflation in Canada: An UpdateHelen LaoCeciline SteynSeptember 2019EE3E31E5E52Financial Frictions, Durable Goods and Monetary Policy
https://www.bankofcanada.ca/2019/08/staff-working-paper-2019-31/
Financial frictions affect how much consumers spend on durable and non-durable goods. Borrowers can face both loan-to-value (LTV) constraints and payment-to-income (PTI) constraints.2019-08-23T13:37:44+00:00enFinancial Frictions, Durable Goods and Monetary Policy2019-08-23Financial system regulation and policiesMonetary policyStaff Working Paper 2019-31https://www.bankofcanada.ca/wp-content/uploads/2019/08/swp2019-31.pdfFinancial Frictions, Durable Goods and Monetary PolicyUgochi EmenoguLeo MichelisAugust 2019EE4E44E5E52Central Bank Communication That Works: Lessons from Lab Experiments
https://www.bankofcanada.ca/2019/06/staff-working-paper-2019-21/
We use controlled laboratory experiments to test the causal effects of central bank communication on economic expectations and to distinguish the underlying mechanisms of those effects. In an experiment where subjects learn to forecast economic variables, we find that central bank communication has a stabilizing effect on individual and aggregate outcomes and that the size of the effect varies with the type of communication.2019-06-13T09:11:50+00:00enCentral Bank Communication That Works: Lessons from Lab Experiments2019-06-13Monetary policy implementationMonetary policy transmissionStaff Working Paper 2019-21https://www.bankofcanada.ca/wp-content/uploads/2019/06/swp2019-21.pdfCentral Bank Communication That Works: Lessons from Lab ExperimentsOleksiy KryvtsovLuba PetersenJune 2019CC9DD8D84EE3E5E52The Neutral Rate in Canada: 2019 Update
https://www.bankofcanada.ca/2019/04/staff-analytical-note-2019-11/
This note provides an update on Bank of Canada staff’s assessment of the Canadian neutral rate. The neutral rate is the policy rate needed to keep output at its potential level and inflation at target once the effects of any cyclical shocks have dissipated. This medium- to long-run concept serves as a benchmark for gauging the degree of monetary stimulus provided by a given policy setting.2019-04-17T11:12:06+00:00enThe Neutral Rate in Canada: 2019 Update2019-04-17Labor Mobility in a Monetary Union
https://www.bankofcanada.ca/2019/04/staff-working-paper-2019-15/
The optimal currency literature has stressed the importance of labor mobility as a precondition for the success of monetary unions. But only a few studies formally link labor mobility to macroeconomic adjustment and policy. In this paper, we study macroeconomic dynamics and optimal monetary policy in an economy with cyclical labor flows across two distinct regions that share trade links and a common monetary framework.2019-04-12T10:08:57+00:00enLabor Mobility in a Monetary Union2019-04-12Business fluctuations and cyclesEconomic modelsLabour marketsMonetary policy frameworkRegional economic developmentsStaff Working Paper 2019-15https://www.bankofcanada.ca/wp-content/uploads/2019/04/swp2019-15.pdfLabor Mobility in a Monetary UnionDaniela HauserMartin SenecaApril 2019EE3E32E5E52FF4Inflation Targeting and Liquidity Traps Under Endogenous Credibility
https://www.bankofcanada.ca/2019/02/staff-working-paper-2019-9/
Policy implications are derived for an inflation-targeting central bank, whose credibility is endogenous and depends on its past ability to achieve its targets. This is done in a New Keynesian framework with heterogeneous and boundedly rational expectations.2019-02-26T12:59:42+00:00enInflation Targeting and Liquidity Traps Under Endogenous Credibility2019-02-26Business fluctuations and cyclesCredibilityMonetary policyStaff Working Paper 2019-9https://www.bankofcanada.ca/wp-content/uploads/2019/02/swp2019-9.pdfInflation Targeting and Liquidity Traps Under Endogenous CredibilityCars HommesJoep LustenhouwerFebruary 2019CC6C62EE3E32E5E52Canada’s Monetary Policy Report: If Text Could Speak, What Would It Say?
https://www.bankofcanada.ca/2019/02/staff-analytical-note-2019-5/
This note analyzes the evolution of the narrative in the Bank of Canada’s Monetary Policy Report (MPR). It presents descriptive statistics on the core text, including length, most frequently used words and readability level—the three Ls. Although each Governor of the Bank of Canada focuses on the macroeconomic events of the day and the mandate of inflation targeting, we observe that the language used in the MPR varies somewhat from one Governor’s tenure to the next.2019-02-06T10:39:30+00:00enCanada’s Monetary Policy Report: If Text Could Speak, What Would It Say?2019-02-06The Distributional Effects of Conventional Monetary Policy and Quantitative Easing: Evidence from an Estimated DSGE Model
https://www.bankofcanada.ca/2019/01/staff-working-paper-2019-6/
This paper compares the distributional effects of conventional monetary policy and quantitative easing (QE) within an estimated open-economy DSGE model of the euro area.2019-01-21T12:52:56+00:00enThe Distributional Effects of Conventional Monetary Policy and Quantitative Easing: Evidence from an Estimated DSGE Model2019-01-21Economic modelsInterest ratesMonetary policyMonetary policy transmissionStaff Working Paper 2019-6https://www.bankofcanada.ca/wp-content/uploads/2019/01/swp2019-6.pdfThe Distributional Effects of Conventional Monetary Policy and Quantitative Easing: Evidence from an Estimated DSGE ModelStefan HohbergerRomanos PriftisLukas VogelJanuary 2019EE4E44E5E52FF4F41