Monetary policy

• The Impact of Globalization and Digitalization on the Phillips Curve

  Staff working paper 2022-7 Christian Friedrich, Peter Selcuk

  Globalization is in retreat, yet digitalization is on the rise. How will these trends impact inflation?

  Content Type(s): Staff research, Staff working papers JEL Code(s): E, E3, E31, E32, F, F6 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Real economy and forecasting, Structural challenges, Digitalization and productivity, International trade, finance and competitiveness

• A Horse Race of Alternative Monetary Policy Regimes Under Bounded Rationality

  Staff discussion paper 2022-4 Joel Wagner, Tudor Schlanger, Yang Zhang

  We introduce bounded rationality in a canonical New Keynesian model calibrated to match Canadian macroeconomic data since Canada’s adoption of inflation targeting. We use the model to quantitatively assess the macroeconomic impact of alternative monetary policy regimes.

  Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E2, E27, E3, E4, E5, E52, E58 Research Theme(s): Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission

• Monetary Policy and Redistribution in Open Economies

  Staff working paper 2022-6 Xing Guo, Pablo Ottonello, Diego Perez

  We study how different types of monetary policy shape the distributional effects of external economic shocks on households’ consumption in a small open economy. Our results present a trade-off between maintaining overall stabilization and controlling consumption inequality.

  Content Type(s): Staff research, Staff working papers JEL Code(s): E, E3, E32, E5, E52, F, F4, F41, F44 Research Theme(s): Financial system, Financial institutions and intermediation, Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission, Structural challenges, International trade, finance and competitiveness

• Heterogeneity and Monetary Policy: A Thematic Review

  Staff discussion paper 2022-2 Felipe Alves, Christian Bustamante, Xing Guo, Katya Kartashova, Soyoung Lee, Thomas Michael Pugh, Kurt See, Yaz Terajima, Alexander Ueberfeldt

  The theory that rich economic diversity of businesses and households both affects and is shaped by economy-wide fluctuations has strong implications for monetary policy. This review places these insights in a Canadian context.

  Content Type(s): Staff research, Staff discussion papers JEL Code(s): D, D2, D25, D3, D31, E, E2, E22, E24, E5, E50, E52 Research Theme(s): Financial system, Household and business credit, Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission