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370
result(s)
August 14, 1999
Passive Money, Active Money, and Monetary Policy
This article by the Bank's visiting economist examines the role of money in the transmission of monetary policy. Professor Laidler argues against the view of money as a passive variable that reacts to changes in prices, output, and interest rates but has no direct causative effect on them. He maintains that the empirical evidence supports the view of money playing an active role in the transmission mechanism. While he agrees that individual monetary aggregates can be difficult to read because of instabilities in the demand-for-money function, he argues that monetary aggregates, particularly those relating to transactions money, should have a more significant place in the hierarchy of policy variables that the Bank considers when formulating monetary policy.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Monetary aggregates,
Monetary policy transmission
Greater Transparency in Monetary Policy: Impact on Financial Markets
Technical Report No. 86
Philippe Muller,
Mark Zelmer
Measures have been taken by the Bank of Canada to increase the transparency of Canadian monetary policy. This paper examines whether the greater transparency has improved financial markets' understanding of the conduct of monetary policy.
Content Type(s):
Staff research,
Technical reports
Topic(s):
Financial markets,
Monetary policy implementation
JEL Code(s):
E,
E5,
E52,
E58,
G,
G1,
G14
Monetary Rules When Economic Behaviour Changes
Staff Working Paper 1999-8
Robert Amano,
Donald Coletti,
Tiff Macklem
This paper examines the implications of changes in economic behaviour for simple inflation-forecast–based monetary rules of the type currently used at two inflation-targeting central banks. Three types of changes in economic behaviour are considered, changes that are motivated by developments in monetary and fiscal policy in the 1990s: changes in monetary policy credibility, changes in […]
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credibility,
Monetary policy and uncertainty,
Monetary policy framework
JEL Code(s):
E,
E5,
E52
The Quantity of Money and Monetary Policy
Staff Working Paper 1999-5
David Laidler
The relationships among the quantity theory of money, monetarism and policy regimes based on money-growth and inflation targeting are briefly discussed as a prelude to an exposition of alternative views of money's role in the transmission mechanism of monetary policy. The passive-money view treats the money supply as an endogenous variable that plays no role […]
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Monetary aggregates,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
E,
E5,
E51,
E52
Inflation Targeting under Uncertainty
Technical Report No. 85
Gabriel Srour
This paper studies the implications of certain kinds of uncertainty for monetary policy. It first describes the optimum policy rule in a simple model of the transmission mechanism as in Ball and Svensson.
Content Type(s):
Staff research,
Technical reports
Topic(s):
Monetary policy and uncertainty,
Monetary policy framework
JEL Code(s):
E,
E5,
E52
The Exchange Rate Regime and Canada's Monetary Order
Staff Working Paper 1999-7
David Laidler
It is a mistake to debate the merits of alternative exchange rate regimes for Canada independently of other features of the monetary order. A coherent order requires a well-defined goal for monetary policy, one that the authorities are capable of achieving, and that anchors private sector expectations. For it to be liberal, the relevant authorities […]
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
Monetary policy framework
JEL Code(s):
E,
E5,
E52,
F,
F3,
F31
November 11, 1998
A primer on the implementation of monetary policy in the LVTS environment
The author summarizes the objectives and key elements of the framework that the Bank will use to implement monetary policy under the new payments system. The article includes a comparison of the key features of the pre-LVTS framework with that to be used in the LVTS environment. It also features a glossary of terms with respect to the Bank's monetary policy operations.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Monetary policy implementation,
Payment clearing and settlement systems
La politique monétaire a-t-elle des effets asymétriques sur l'emploi?
Staff Working Paper 1998-17
Lise Pichette
Several economists, including Cover (1992), Ammer and Brunner (1995), Macklem, Paquet, and Phaneuf (1996), have worked over the past few years to determine whether monetary policy shocks have asymmetric effects on output. These authors have generally found that negative monetary shocks tend to reduce output growth significantly, and that positive shocks generally have a weaker […]
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Monetary policy transmission
JEL Code(s):
E,
E5
Liquidity Effects and Market Frictions
Staff Working Paper 1998-11
Scott Hendry,
Guang-Jia Zhang
The goal of this paper is to shed light on the nature of the monetary transmission mechanism. Specifically, we attempt to tackle two problems in standard limited-participation models: (1) the interest rate liquidity effect is not as persistent as in the data; and (2) some nominal variables are unrealistically volatile. To address these problems, we […]
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Monetary policy transmission
JEL Code(s):
E,
E5