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370
result(s)
A Horse Race of Monetary Policy Regimes: An Experimental Investigation
Staff Working Paper 2022-33
Olena Kostyshyna,
Luba Petersen,
Jing Yang
How should central banks design monetary policy in stable times and during recessions? We run a horse race between five monetary policy frameworks in an experimental laboratory to assess how well the different approaches can manage the public’s expectations and stabilize the economy.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation targets,
Monetary policy,
Monetary policy communications,
Monetary policy framework
JEL Code(s):
C,
C9,
D,
D8,
D84,
E,
E5,
E52,
E58
The Business Leaders’ Pulse—An Online Business Survey
Staff Discussion Paper 2022-14
Tony Chernis,
Chris D'Souza,
Kevin MacLean,
Tasha Reader,
Joshua Slive,
Farrukh Suvankulov
This paper introduces the Business Leaders’ Pulse, a new online survey conducted each month. It is designed to provide timely and flexible input into the Bank of Canada’s monetary policy decision making by asking firms about their sales and employment growth expectations, the risks to their business outlook, and topical questions that address specific information needs of the Bank.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Monetary policy and uncertainty,
Recent economic and financial developments
JEL Code(s):
C,
C8,
C83,
D,
D2,
D22,
E,
E3,
E32
International Transmission of Quantitative Easing Policies: Evidence from Canada
Staff Working Paper 2022-30
Serdar Kabaca,
Kerem Tuzcuoglu
This paper examines the cross-border spillovers from major economies’ quantitative easing (QE) policies to their trading partners. We concentrate on spillovers from the US to Canada during the zero lower bound period when QE policies were actively used.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
International topics,
Monetary policy transmission
JEL Code(s):
E,
E5,
E52,
F,
F4,
F41,
F44
Unregulated Lending, Mortgage Regulations and Monetary Policy
Staff Working Paper 2022-28
Ugochi Emenogu,
Brian Peterson
This paper evaluates the effectiveness of macroprudential policies when regulations are uneven across mortgage lender types. We look at credit tightening that results from macroprudential regulations and examine how much of it is counteracted by credit shifting to unregulated lenders. We also study the impact of monetary policy tightening when some lenders are unregulated.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial system regulation and policies,
Monetary policy transmission
JEL Code(s):
E,
E4,
E44,
E5,
E50,
E52,
E58,
G,
G2,
G21,
G23,
G28
Settlement Balances Deconstructed
Staff Discussion Paper 2022-13
Parnell Chu,
Grahame Johnson,
Scott Kinnear,
Karen McGuinness,
Matthew McNeely
Because of the COVID-19 pandemic, public interest in the Bank’s balance sheet and, more specifically, the size of settlement balances, has grown. This paper deconstructs the concept of settlement balances and provides some context on their history, current state and possible future evolution.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Central bank research,
Coronavirus disease (COVID-19),
Financial markets,
Monetary policy implementation
JEL Code(s):
E,
E5,
E58,
E59,
E6,
G,
G0,
G01
Uncertainty and Monetary Policy Experimentation: Empirical Challenges and Insights from Academic Literature
Staff Discussion Paper 2022-9
Matteo Cacciatore,
Dmitry Matveev,
Rodrigo Sekkel
Central banks face considerable uncertainty when conducting monetary policy. The COVID-19 pandemic brought this issue back to the forefront of policy discussions. We draw from academic literature to review key sources of uncertainty and how they affect the conduct of monetary policy.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Central bank research,
Monetary policy and uncertainty,
Potential output
JEL Code(s):
E,
E3,
E5
Exports and the Exchange Rate: A General Equilibrium Perspective
Staff Working Paper 2022-18
Patrick Alexander,
Abeer Reza
How do a country’s exports change when its currency depreciates? Does it matter which forces drive the exchange rate deprecation in the first place? We find that this relationship varies greatly depending on what drives exchange rate movements, and we conclude that the direct relationship between the exchange rate and exports is weak for Canada.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Balance of payments and components,
Business fluctuations and cycles,
Exchange rate regimes,
Exchange rates,
International topics,
Monetary policy transmission,
Trade integration
JEL Code(s):
F,
F3,
F31,
F32,
F33,
F4,
F41
Real Exchange Rate Decompositions
Staff Discussion Paper 2022-6
Bruno Feunou,
Jean-Sébastien Fontaine,
Ingomar Krohn
We break down the exchange rate based on an explicit link between fixed income and currency markets. We isolate a foreign exchange risk premium and show it is the main driver of the exchange rate between the Canadian and US dollars, especially on monetary policy and macroeconomic news announcement days.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Asset pricing,
Exchange rates,
International financial markets,
Monetary policy transmission
JEL Code(s):
E,
E4,
E43,
F,
F3,
F31,
G,
G1,
G12
Household Heterogeneity and the Performance of Monetary Policy Frameworks
Staff Working Paper 2022-12
Edouard Djeutem,
Mario He,
Abeer Reza,
Yang Zhang
Consumption inequality and a low interest rate environment are two important trends in today’s economy. But the implications they may have—and how those implications interact—within different monetary policy frameworks are not well understood. We study the ranking of alternative frameworks that take these trends into account.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Monetary policy and uncertainty,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
D,
D3,
D31,
D5,
D52,
E,
E2,
E21,
E3,
E31,
E5,
E52,
E58