E52 - Monetary Policy - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T08:57:14+00:00Implementation and Effectiveness of Extended Monetary Policy Tools: Lessons from the Literature
https://www.bankofcanada.ca/2020/12/staff-discussion-paper-2020-16/
This paper summarizes the literature on the performance of various extended monetary policy tools when conventional policy rates are constrained by the effective lower bound. We highlight issues that may arise when these tools are used by central banks of small open economies.2020-12-23T11:29:51+00:00enImplementation and Effectiveness of Extended Monetary Policy Tools: Lessons from the Literature2020-12-23Monetary policyMonetary policy implementationMonetary policy transmissionStaff Discussion Paper 2020-16https://www.bankofcanada.ca/wp-content/uploads/2020/12/sdp2020-16.pdfStaff Discussion Paper 2020-16Grahame JohnsonSharon KozickiRomanos PriftisLena SuchanekJonathan WitmerJing YangDecember 2020EE5E52E58E6E632020 US Neutral Rate Assessment
https://www.bankofcanada.ca/2020/12/staff-discussion-paper-2020-12/
This paper presents Bank of Canada staff’s current assessment of the US neutral rate, along with a newly developed set of models on which that assessment is based. The overall assessment is that the US neutral rate currently lies in a range of 1.75 to 2.75 percent.2020-12-01T13:47:11+00:00en2020 US Neutral Rate Assessment2020-12-01Economic modelsInterest ratesMonetary policyStaff Discussion Paper 2020-12https://www.bankofcanada.ca/wp-content/uploads/2020/12/sdp2020-12.pdf2020 US Neutral Rate AssessmentJames BootsmaThomas J. CarterXin Scott ChenChristopher HajzlerArgyn ToktamyssovDecember 2020EE4E40E43E5E50E52E58FF4F41Has the Inflation Process Changed? Selective Review of Recent Research on Inflation Dynamics
https://www.bankofcanada.ca/2020/11/staff-discussion-paper-2020-11/
From 2011 to 2019, inflation in Canada and advanced economies usually registered below inflation targets, spurring the debate on whether the inflation process has changed. This paper highlights emerging questions that will influence the conduct of monetary policy in Canada in the near term.2020-11-26T13:00:49+00:00enHas the Inflation Process Changed? Selective Review of Recent Research on Inflation Dynamics2020-11-26Central bank researchInflation and pricesMonetary policyStaff Discussion Paper 2020-11https://www.bankofcanada.ca/wp-content/uploads/2020/11/sdp2020-11.pdfOleksiy KryvtsovJames (Jim) C. MacGeeNovember 2020EE3E31E5E52Optimal Quantitative Easing in a Monetary Union
https://www.bankofcanada.ca/2020/11/staff-working-paper-2020-49/
How should a central bank conduct quantitative easing (QE) in a monetary union when regions differ in their size and portfolio characteristics? Optimal QE policy suggests allocating greater purchases from the region that faces stronger portfolio frictions, and not necessarily according to each region’s size.2020-11-24T09:04:14+00:00enOptimal Quantitative Easing in a Monetary Union2020-11-24Business fluctuations and cyclesEconomic modelsMonetary policyStaff Working Paper 2020-49https://www.bankofcanada.ca/wp-content/uploads/2020/11/swp2020-49.pdfStaff Working Paper 2020-49Serdar KabacaRenske MaasKostas MavromatisRomanos PriftisNovember 2020EE4E43E5E52E58Understanding Trend Inflation Through the Lens of the Goods and Services Sectors
https://www.bankofcanada.ca/2020/11/staff-working-paper-2020-45/
The goods and services sectors have experienced considerably different dynamics over the past three decades. Our goal in this paper is to understand how such contrasting behaviors at the sectoral level affect the aggregate level of trend inflation dynamics.2020-11-03T13:20:02+00:00enUnderstanding Trend Inflation Through the Lens of the Goods and Services Sectors2020-11-03Econometric and statistical methodsInflation and pricesMonetary policy transmissionStaff Working Paper 2020-45https://www.bankofcanada.ca/wp-content/uploads/2020/11/swp2020-45.pdfStaff Working Paper 2020-45Yunjong EoLuis UzedaBenjamin WongNovember 2020CC1C11C3C32EE3E31E5E52The neutral rate in Canada: 2020 update
https://www.bankofcanada.ca/2020/10/staff-analytical-note-2020-24/
The neutral rate of interest is important for central banks because it helps measure the stance of monetary policy. We present updated estimates of the neutral rate in Canada using the most recent data. We expect the COVID-19 pandemic to significantly affect the fundamental drivers of the Canadian neutral rate.2020-10-22T07:11:26+00:00enThe neutral rate in Canada: 2020 update2020-10-22Forward Guidance and Expectation Formation: A Narrative Approach
https://www.bankofcanada.ca/2020/09/staff-working-paper-2020-40/
How exactly does forward guidance influence interest rate expectations?2020-09-28T13:31:15+00:00enForward Guidance and Expectation Formation: A Narrative Approach2020-09-28Central bank researchMonetary policyMonetary policy communicationsMonetary policy transmissionStaff Working Paper 2020-40https://www.bankofcanada.ca/wp-content/uploads/2020/09/swp2020-40.pdfStaff Working Paper 2020-40Christopher S. SutherlandSeptember 2020DD8D83D84EE3E37E5E52E58What do high-frequency expenditure network data reveal about spending and inflation during COVID‑19?
https://www.bankofcanada.ca/2020/09/staff-analytical-note-2020-20/
The official consumer price index (CPI) inflation measure, based on a fixed basket set before the COVID 19 pandemic, may not fully reflect what consumers are currently experiencing. We partnered with Statistics Canada to construct a more representative index for the pandemic with weights based on real-time transaction and survey data.2020-09-11T10:00:15+00:00enWhat do high-frequency expenditure network data reveal about spending and inflation during COVID‑19?2020-09-11Monetary Policy and Cross-Border Interbank Market Fragmentation: Lessons from the Crisis
https://www.bankofcanada.ca/2020/08/staff-working-paper-2020-34/
We present a two-country model featuring risky lending and cross-border interbank market frictions.2020-08-27T13:10:08+00:00enMonetary Policy and Cross-Border Interbank Market Fragmentation: Lessons from the Crisis2020-08-27Business fluctuations and cyclesCredit and credit aggregatesInternational financial marketsMonetary policy frameworkMonetary policy transmissionStaff Working Paper 2020-34https://www.bankofcanada.ca/wp-content/uploads/2020/08/swp2020-34.pdfStaff Working Paper 2020-34Tobias BlattnerJonathan SwarbrickAugust 2020EE4E44E5E52FF3F32F36Strengthening Inflation Targeting: Review and Renewal Processes in Canada and Other Advanced Jurisdictions
https://www.bankofcanada.ca/2020/08/staff-discussion-paper-2020-7/
We summarize the review and renewal process at four central banks (Reserve Bank of New Zealand, Bank of England, Sveriges Riksbank and the US Federal Reserve Bank) and compare them with the process at the Bank of Canada, which has been well-established since 2001.2020-08-06T14:45:02+00:00enStrengthening Inflation Targeting: Review and Renewal Processes in Canada and Other Advanced Jurisdictions2020-08-06Central bank researchInflation targetsMonetary policy frameworkStaff Discussion Paper 2020-7https://www.bankofcanada.ca/wp-content/uploads/2020/08/sdp2020-7.pdfStaff Discussion Paper 2020-7Robert AmanoThomas J. CarterLawrence L. SchembriAugust 2020EE5E52E58