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279
result(s)
Asset-Price Misalignments and Monetary Policy: How Flexible Should Inflation-Targeting Regimes Be?
Staff Discussion Paper 2007-6
Jack Selody,
Carolyn A. Wilkins
The authors analyze the extent to which inflation-targeting frameworks should incorporate flexibility in order to respond to asset-price misalignments and other atypical events. They examine the costs and benefits of adding flexibility to the Bank's current inflation-targeting framework, and conclude that maintaining low and stable consumer price inflation is the best contribution that monetary policy […]
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Inflation targets,
Monetary policy framework
JEL Code(s):
E,
E5,
E6
Liquidity, Redistribution, and the Welfare Cost of Inflation
Staff Working Paper 2007-39
Jonathan Chiu,
Miguel Molico
This paper studies the long run welfare costs of inflation in a micro-founded model with trading frictions and costly liquidity management.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation: costs and benefits
JEL Code(s):
E,
E4,
E40,
E5,
E50
Cross-Country Estimates of the Degree of Fiscal Dominance and Central Bank Independence
Staff Working Paper 2007-36
Carlos De Resende
This paper studies the interdependence between fiscal and monetary policies, and their joint role in the determination of the price level.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Fiscal policy,
Inflation: costs and benefits
JEL Code(s):
E,
E3,
E31,
E4,
E42,
E5,
E50,
E6,
E63
Gold Prices and Inflation
Staff Working Paper 2007-35
Greg Tkacz
Using data for 14 countries over the 1994 to 2005 period, we assess the leading indicator properties of gold at horizons ranging from 6 to 24 months.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
Inflation and prices
JEL Code(s):
E,
E3,
E31,
E4,
E44
Should Central Banks Adjust Their Target Horizons in Response to House-Price Bubbles?
Staff Discussion Paper 2007-4
Meenakshi Basant Roi,
Rhys R. Mendes
The authors investigate the implications of house-price bubbles for the optimal inflation-target horizon using a dynamic general-equilibrium model with credit frictions, house-price bubbles, and small open-economy features. They find that, given the distribution of shocks and inflation persistence over the past 25 years, the optimal target horizon for Canada tends to be at the lower […]
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Central bank research,
Credit and credit aggregates,
Economic models,
Inflation targets,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
E,
E4,
E42,
E44,
E5,
E52,
E58,
E6,
E61
Oil Price Movements and the Global Economy: A Model-Based Assessment
Staff Working Paper 2007-34
Selim Elekdag,
René Lalonde,
Douglas Laxton,
Dirk Muir,
Paolo Pesenti
We develop a five-region version (Canada, an oil exporter, the United States, emerging Asia and Japan plus the euro area) of the Global Economy Model (GEM) encompassing production and trade of crude oil, and use it to study the international transmission mechanism of shocks that drive oil prices.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Inflation and prices,
International topics
JEL Code(s):
E,
E6,
E66,
F,
F3,
F32,
F4,
F47
Micro Foundations of Price-Setting Behaviour: Evidence from Canadian Firms
Staff Working Paper 2007-31
Daniel de Munnik,
Kuan Xu
How do firms adjust prices in the marketplace? Do they tend to adjust prices infrequently in response to changes in market conditions? If so, why? These remain key questions in macroeconomics, particularly for central banks that work to keep inflation low and stable.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Monetary policy transmission
JEL Code(s):
D,
D4,
D40,
E,
E3,
E30,
L,
L1,
L11
The Zero Bound on Nominal Interest Rates: Implications for the Optimal Monetary Policy in Canada
Staff Discussion Paper 2007-1
Claude Lavoie,
Hope Pioro
The authors assess the performance of the Canadian economy under a variety of interest rate rules when the zero bound on nominal interest rates can bind. Their assessment is based on numerical simulations of a dynamic stochastic general-equilibrium model in a stochastic environment. Consistent with the literature, the authors find that the probability and consequences […]
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Inflation: costs and benefits,
Interest rates,
Monetary policy framework
JEL Code(s):
E,
E4,
E43,
E47,
E5,
E52
Central Bank Performance under Inflation Targeting
Staff Working Paper 2007-18
Marc-André Gosselin
The inflation targeting (IT) regime is 17 years old. With practice of IT now in more than 21 countries, there is enough evidence gathered to take stock of the IT experience. In this paper, we analyze the inflation record of IT central banks.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Inflation targets,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E5,
E52,
E58