Posts

• November 8, 2021

  Quarterly Financial Report - Third Quarter 2021

  Quarterly Financial Report - Third Quarter 2021 - For the period ended September 30, 2021

  Content Type(s): Publications, Quarterly Financial Report

• Optimal Monetary Policy According to HANK

  Staff Working Paper 2021-55 Sushant Acharya, Edouard Challe, Keshav Dogra

  We study optimal monetary policy in an analytically tractable Heterogeneous Agent New Keynesian model. In the model, the central bank has an incentive to reduce consumption inequality in addition to keeping economic activity at its efficient level and inflation stable.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Economic models, Monetary policy JEL Code(s): E, E2, E21, E3, E30, E5, E52, E6, E62, E63

• Evaluating the Effects of Forward Guidance and Large-scale Asset Purchases

  Staff Working Paper 2021-54 Xu Zhang

  I propose a novel method to identify and estimate the macroeconomic effects of forward guidance and large-scale asset purchases (LSAP) for each FOMC announcement. I find that LSAP is more important than forward guidance in influencing output and inflation. LSAP puts upward pressure on short-term yields, so it should always be used in conjunction with forward guidance.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles, Central bank research, Econometric and statistical methods, Interest rates JEL Code(s): E, E5, G, G0
• October 31, 2021

  Research Update - October 2021

  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.

  Content Type(s): Staff research, Research newsletters
• October 29, 2021

  Operational details for upcoming secondary market purchases of Government of Canada securities (November 1-12)

  As previously announced, the Bank of Canada (the Bank) launched on April 1, 2020 a program to purchase Government of Canada securities in the secondary market – the Government Bond Purchase Program (GBPP).

  Content Type(s): Press, Market notices Source(s): Government of Canada Bond Purchase Program

• What to Target? Insights from a Lab Experiment

  Staff Working Paper 2021-53 Isabelle Salle

  In a laboratory experiment, we ask participants to predict inflation using three different policy regimes: inflation targeting—with and without greater communication of the target—average inflation targeting and price level targeting. We use participants’ predictions to compare the level and stability of inflation under each regime.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Inflation targets, Monetary policy communications, Monetary policy framework JEL Code(s): C, C9, C92, E, E3, E31, E5, E52, E7
• October 27, 2021

  Monetary Policy Report Press Conference Opening Statement

  Opening statement Tiff Macklem Ottawa, Ontario

  Governor Tiff Macklem discusses key issues involved in the Governing Council’s deliberations about the policy rate decision and the MPR.

  Content Type(s): Press, Speeches and appearances, Opening statements
• October 27, 2021

  Balance sheet operations for the reinvestment of proceeds of maturing Government of Canada bonds

  As announced on October 27, 2021, the Bank of Canada is ending quantitative easing and moving into the reinvestment phase effective November 1, 2021.

  Content Type(s): Press, Market notices Source(s): Government of Canada Bond Purchase Program
• October 27, 2021

  Labour market recovery from COVID‑19

  COVID-19 has emphasized the complexity and diversity of the labour market – and the need to look at a broad range of measures to assess labour market health. View the indicators that track the recovery of the labour market from COVID-19.
• October 27, 2021

  Bank of Canada maintains policy rate and forward guidance, ends quantitative easing

  Media Relations Ottawa, Ontario

  The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent.

  Content Type(s): Press, Press releases