Dmitry Matveev - Latest - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T09:41:10+00:00Potential output and the neutral rate in Canada: 2023 assessment
https://www.bankofcanada.ca/2023/05/staff-analytical-note-2023-6/
We expect that potential output growth will rebound from 1.4% in 2022 to 2.2% on average between 2023 and 2026. We revised down our estimates of growth over 2022–25 relative to the April 2022 assessment. The Canadian nominal neutral rate remains unchanged—in the range of 2% to 3%.2023-05-11T16:06:50+00:00enPotential output and the neutral rate in Canada: 2023 assessment2023-05-11The Canadian Neutral Rate of Interest through the Lens of an Overlapping-Generations Model
https://www.bankofcanada.ca/2023/02/staff-discussion-paper-2023-5/
We use a small open economy model with overlapping generations to evaluate secular dynamics of the neutral rate in Canada from 1980 to 2018. We find that changes in both foreign and domestic factors resulted in a protracted decline in the neutral rate.2023-02-21T16:42:36+00:00enThe Canadian Neutral Rate of Interest through the Lens of an Overlapping-Generations Model2023-02-21Economic modelsInterest ratesMonetary policyStaff Discussion Paper 2023-5https://www.bankofcanada.ca/wp-content/uploads/2023/02/sdp2023-5.pdfStaff Discussion Paper 2023-5Martin KunclDmitry MatveevFebruary 2023EE2E21E22E4E43E5E50E52E58FF4F41Uncertainty and Monetary Policy Experimentation: Empirical Challenges and Insights from Academic Literature
https://www.bankofcanada.ca/2022/04/staff-discussion-paper-2022-9/
Central banks face considerable uncertainty when conducting monetary policy. The COVID-19 pandemic brought this issue back to the forefront of policy discussions. We draw from academic literature to review key sources of uncertainty and how they affect the conduct of monetary policy.2022-04-18T08:28:26+00:00enUncertainty and Monetary Policy Experimentation: Empirical Challenges and Insights from Academic Literature2022-04-18Central bank researchMonetary policy and uncertaintyPotential outputStaff Discussion Paper 2022-9https://www.bankofcanada.ca/wp-content/uploads/2022/04/sdp2022-9.pdfUncertainty and Monetary Policy Experimentation: Empirical Challenges and Insights from Academic LiteratureMatteo CacciatoreDmitry MatveevRodrigo SekkelApril 2022EE3E5Potential output and the neutral rate in Canada: 2022 reassessment
https://www.bankofcanada.ca/2022/04/staff-analytical-note-2022-3/
We expect potential output growth to be lower in 2021 than anticipated in the April 2021 assessment. By 2025, growth is expected to reach 2.3%. We assess that the Canadian nominal neutral rate increased slightly to lie in the range of 2.00% to 3.00%.2022-04-13T14:07:41+00:00enPotential output and the neutral rate in Canada: 2022 reassessment2022-04-13The Central Bank Strikes Back! Credibility of Monetary Policy under Fiscal Influence
https://www.bankofcanada.ca/2022/03/staff-working-paper-2022-11/
Central banks in many advanced economies enjoy a high degree of independence, which protects monetary policy decisions from political influence. But how should independent central banks react if pressured by fiscal policy-makers? We examine whether a central bank should design a monetary policy framework that prescribes acting conditionally on how fiscal policy behaves.2022-03-04T11:26:44+00:00enThe Central Bank Strikes Back! Credibility of Monetary Policy under Fiscal Influence2022-03-04CredibilityFiscal policyMonetary policyStaff Working Paper 2022-11https://www.bankofcanada.ca/wp-content/uploads/2022/03/swp2022-11.pdfThe Central Bank Strikes Back! Credibility of Monetary Policy under Fiscal InfluenceAntoine CamousDmitry MatveevMarch 2022EE0E02E5E52E58E6E61E62Tariffs and the Exchange Rate: Evidence from Twitter
https://www.bankofcanada.ca/2021/07/staff-working-paper-2021-36/
Do tariffs affect exchange rates? We look at President Trump’s tweets during talks on the North American Free Trade Agreement and find that anticipation of higher tariffs on imports from Canada and Mexico led to an appreciation of the US dollar relative to Canadian and Mexican currency.2021-07-21T15:54:37+00:00enTariffs and the Exchange Rate: Evidence from Twitter2021-07-21Exchange ratesTrade integrationStaff Working Paper 2021-36https://www.bankofcanada.ca/wp-content/uploads/2021/07/swp2021-36.pdfStaff Working Paper 2021-36Dmitry MatveevFrancisco Ruge-MurciaJuly 2021FF1F13F3F31Complementarities Between Fiscal Policy and Monetary Policy—Literature Review
https://www.bankofcanada.ca/2021/03/staff-discussion-paper-2021-4/
This paper surveys and summarizes the literature on how fiscal policy and monetary policy can complement each other in stabilizing economic activity.2021-03-15T10:01:57+00:00enComplementarities Between Fiscal Policy and Monetary Policy—Literature Review2021-03-15Fiscal policyMonetary policyStaff Discussion Paper 2021-4https://www.bankofcanada.ca/wp-content/uploads/2021/03/sdp2021-4.pdfStaff Discussion Paper 2021-4Wei DongGeoffrey R. DunbarChristian FriedrichDmitry MatveevRomanos PriftisLin ShaoMarch 2021EE5E52E58E6E62E63The 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 update2020-10-22Monetary 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 Independence2019-12-18