E12 - Keynes; Keynesian; Post-Keynesian - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T11:59:33+00:00Labor Market Shocks and Monetary Policy
https://www.bankofcanada.ca/2023/10/staff-working-paper-2023-52/
We develop a heterogeneous-agent New Keynesian model featuring a frictional labor market with on-the-job search to quantitatively study the positive and normative implications of employer-to-employer transitions for inflation.2023-10-05T14:31:46+00:00enLabor Market Shocks and Monetary Policy2023-10-05Business fluctuations and cyclesInflation and pricesLabour marketsMonetary policyStaff Working Paper 2023-52https://www.bankofcanada.ca/wp-content/uploads/2023/10/swp2023-52.pdfStaff Working Paper 2023-52Serdar BirinciFatih KarahanYusuf MercanKurt SeeOctober 2023EE1E12E2E24E5E52JJ3J31J6J62J64The 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 2022EE1E12E2E24E3E31E5E52E58E6E65Identifying Aggregate Shocks with Micro-level Heterogeneity: Financial Shocks and Investment Fluctuation
https://www.bankofcanada.ca/2020/05/staff-working-paper-2020-17/
This paper identifies aggregate financial shocks and quantifies their effects on business investment based on an estimated DSGE model with firm-level heterogeneity. On average, financial shocks contribute only 3% of the variation in U.S. public firms’ aggregate investment.2020-05-19T09:07:43+00:00enIdentifying Aggregate Shocks with Micro-level Heterogeneity: Financial Shocks and Investment Fluctuation2020-05-19Business fluctuations and cyclesFirm dynamicsStaff Working Paper 2020-17https://www.bankofcanada.ca/wp-content/uploads/2020/05/swp2020-17.pdfStaff Working Paper 2020-17Xing GuoMay 2020EE1E12E2E22GG3G31G32The Power of Helicopter Money Revisited: A New Keynesian Perspective
https://www.bankofcanada.ca/2020/02/staff-discussion-paper-2020-1/
We analyze money financing of fiscal transfers (helicopter money) in two simple New Keynesian models: a “textbook” model in which all money is non-interest-bearing (e.g., all money is currency), and a more realistic model with interest-bearing reserves.2020-02-07T16:29:53+00:00enThe Power of Helicopter Money Revisited: A New Keynesian Perspective2020-02-07CredibilityEconomic modelsFiscal policyInflation targetsInterest ratesMonetary policyMonetary policy and uncertaintyMonetary policy frameworkMonetary policy transmissionStaff Discussion Paper 2020-1https://www.bankofcanada.ca/wp-content/uploads/2020/02/sdp2020-1.pdfThe Power of Helicopter Money Revisited: A New Keynesian PerspectiveThomas J. CarterRhys R. MendesFebruary 2020EE1E12E4E41E43E5E51E52E58E6E61E63Inflation and Unemployment in Competitive Search Equilibrium
https://www.bankofcanada.ca/2010/06/working-paper-2010-15/
Using a monetary search model, Rocheteau, Rupert and Wright (2007) show that the relationship between inflation and unemployment can be positive or negative depending on the primitives of the model. The key features are indivisible labor, nonseparable preferences and bargaining.2010-06-18T09:03:27+00:00enInflation and Unemployment in Competitive Search Equilibrium2010-06-18Inflation: costs and benefitsWorking Paper 2010-15https://www.bankofcanada.ca/wp-content/uploads/2010/06/wp10-15.pdfInflation and Unemployment in Competitive Search EquilibriumMei DongJune 2010EE1E12E13E4E40E5E52Real and Nominal Frictions within the Firm: How Lumpy Investment Matters for Price Adjustment
https://www.bankofcanada.ca/2009/12/working-paper-2009-36/
Real rigidities are an important feature of modern sticky price models and are policy-relevant because of their welfare consequences, but cannot be structurally identified from time series. I evaluate the plausibility of capital specificity as a source of real rigidities using a two-dimensional generalized (s,S) model calibrated to micro evidence.2009-12-15T16:03:27+00:00enReal and Nominal Frictions within the Firm: How Lumpy Investment Matters for Price Adjustment2009-12-15Monetary policy transmissionWorking Paper 2009-36 https://www.bankofcanada.ca/wp-content/uploads/2010/02/wp09-36.pdfReal and Nominal Frictions within the Firm: How Lumpy Investment Matters for Price AdjustmentMichael K. JohnstonDecember 2009EE1E12E2E22E3E31A No-Arbitrage Analysis of Macroeconomic Determinants of Term Structures and the Exchange Rate
https://www.bankofcanada.ca/2007/03/working-paper-2007-21/
We study the joint dynamics of macroeconomic variables, bond yields, and the exchange rate in an empirical two-country New-Keynesian model complemented with a no-arbitrage term structure model. With Canadian and US data, we are able to study the impact of macroeconomic shocks from both countries on their yield curves and the exchange rate.2007-03-08T15:54:24+00:00enA No-Arbitrage Analysis of Macroeconomic Determinants of Term Structures and the Exchange Rate2007-03-08Debt managementEconometric and statistical methodsExchange ratesFinancial marketsInterest ratesWorking Paper 2007-21 https://www.bankofcanada.ca/wp-content/uploads/2010/03/wp07-21.pdfA No-Arbitrage Analysis of Macroeconomic Determinants of Term Structures and the Exchange RateFousseni Chabi-YoJun YangMarch 2007EE1E12E4E43FF4F41GG1G12G15Self-Enforcing Labour Contracts and the Dynamics Puzzle
https://www.bankofcanada.ca/2005/01/working-paper-2005-1/
To properly account for the dynamics of key macroeconomic variables, researchers incorporate various internal-propagation mechanisms in their models.2005-01-01T10:41:11+00:00enSelf-Enforcing Labour Contracts and the Dynamics Puzzle2005-01-01Business fluctuations and cyclesEconomic modelsLabour marketsWorking Paper 2005-1 https://www.bankofcanada.ca/wp-content/uploads/2010/02/wp05-1.pdfSelf-Enforcing Labour Contracts and the Dynamics PuzzleChristian CalmèsJanuary 2005EE1E12E4E49JJ3J30J31J4J41Poignée de main invisible et persistance des cycles économiques : une revue de la littérature
https://www.bankofcanada.ca/2003/12/working-paper-2003-40/
The author explains how self-enforcing labour contracts can enhance the performance of macroeconomic models. He exposes the benefits of using these dynamic contracts to account for some puzzling macroeconomic facts regarding the dynamics and persistence of employment, consumption and output.2003-12-04T14:47:41+00:00frPoignée de main invisible et persistance des cycles économiques : une revue de la littérature2003-12-04Business fluctuations and cyclesEconomic modelsWorking Paper 2003-40https://www.bankofcanada.ca/wp-content/uploads/2010/02/wp03-40.pdfPoignée de main invisible et persistance des cycles économiques : une revue de la littératureChristian CalmèsDecember 2003EE1E12E4E49JJ3J30J31J4J41