E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T10:08:41+00:00Harnessing the benefit of state-contingent forward guidance
https://www.bankofcanada.ca/2022/09/staff-analytical-note-2022-13/
A low level of the neutral rate of interest increases the likelihood that a central bank’s policy rate will reach its effective lower bound (ELB) in future economic downturns. In a low neutral rate environment, using an extended monetary policy toolkit including forward guidance helps address the ELB challenge. Using the Bank’s Terms-of-Trade Economic Model, we assess the benefits and limitations of a state-contingent forward guidance implemented within a flexible inflation targeting framework.2022-09-26T11:27:58+00:00enHarnessing the benefit of state-contingent forward guidance2022-09-26How does the Bank of Canada’s balance sheet impact the banking system?
https://www.bankofcanada.ca/2022/09/staff-analytical-note-2022-12/
We examine how changes in the Bank of Canada’s balance sheet impact the banking system. Quantitative easing contributed to an increase in the size of the banking system’s balance sheet and an improvement in bank liquidity coverage ratios. Quantitative tightening is expected to partially reverse these impacts. The banking system will have to adjust its liquidity management strategy in response.2022-09-22T10:00:41+00:00enHow does the Bank of Canada’s balance sheet impact the banking system?2022-09-22The Central Bank’s Dilemma: Look Through Supply Shocks or Control Inflation Expectations?
https://www.bankofcanada.ca/2022/09/staff-working-paper-2022-41/
When countries are hit by supply shocks, central banks often face the dilemma of either looking through such shocks or reacting to them to ensure that inflation expectations remain anchored. In this paper, we propose a tractable framework to capture this dilemma and then explore optimal policy under a range of assumptions about how expectations are formed.2022-09-20T15:30:42+00:00enThe Central Bank’s Dilemma: Look Through Supply Shocks or Control Inflation Expectations?2022-09-20Central bank researchEconomic modelsInflation and pricesMonetary policyMonetary policy and uncertaintyMonetary policy communicationsStaff Working Paper 2022-41https://www.bankofcanada.ca/wp-content/uploads/2022/09/swp2022-41.pdfStaff Working Paper 2022-41Paul BeaudryThomas J. CarterAmartya LahiriSeptember 2022EE1E12E2E24E3E31E5E52E58E6E65House Price Responses to Monetary Policy Surprises: Evidence from the U.S. Listings Data
https://www.bankofcanada.ca/2022/09/staff-working-paper-2022-39/
Existing literature documents that house prices respond to monetary policy surprises with a significant delay, taking years to reach their peak response. We present new evidence of a much faster response.2022-09-20T08:15:42+00:00enHouse Price Responses to Monetary Policy Surprises: Evidence from the U.S. Listings Data2022-09-20HousingInflation and pricesInterest ratesMonetary policy transmissionStaff Working Paper 2022-39https://www.bankofcanada.ca/wp-content/uploads/2022/09/swp2022-39.pdfHouse Price Responses to Monetary Policy Surprises: Evidence from the U.S. Listings DataDenis GoreaOleksiy KryvtsovMarianna KudlyakSeptember 2022EE5E52RR2R21R3R31