Standard monetary models adopt an infinite horizon with discounting. Testing these models in the lab requires implementing this horizon within a limited time frame. We compare three approaches to such an implementation and discuss their relative advantages.
This monthly newsletter features the latest research publications by Bank of Canada economists including external publications and working papers published on the Bank of Canada’s website.
Following the launch of the Bank of Canada’s new Standing Term Liquidity Facility (STLF), the terms and conditions have been revised to include term of up to ninety (90) days.