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370
result(s)
Heterogeneity and Monetary Policy: A Thematic Review
Staff Discussion Paper 2022-2
Felipe Alves,
Christian Bustamante,
Xing Guo,
Katya Kartashova,
Soyoung Lee,
Thomas Michael Pugh,
Kurt See,
Yaz Terajima,
Alexander Ueberfeldt
The theory that rich economic diversity of businesses and households both affects and is shaped by economy-wide fluctuations has strong implications for monetary policy. This review places these insights in a Canadian context.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Economic models,
Monetary policy and uncertainty,
Monetary policy transmission
JEL Code(s):
D,
D2,
D25,
D3,
D31,
E,
E2,
E22,
E24,
E5,
E50,
E52
Central Bank Digital Currency and Banking: Macroeconomic Benefits of a Cash-Like Design
Staff Working Paper 2021-63
Jonathan Chiu,
Mohammad Davoodalhosseini
Should a CBDC be more like cash or bank deposits? An interest-bearing, cash-like CBDC not only makes payments more efficient but also increases total demand. This has positive effects on other transactions, inducing more deposit taking and lending and, thus, bank intermediation.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Monetary policy,
Monetary policy framework
JEL Code(s):
E,
E5,
E50,
E58
Monetary Policy Spillover to Small Open Economies: Is the Transmission Different under Low Interest Rates?
Staff Working Paper 2021-62
Jin Cao,
Valeriya Dinger,
Tomás Gómez,
Zuzana Gric,
Martin Hodula,
Alejandro Jara,
Ragnar Juelsrud,
Karolis Liaudinskas,
Simona Malovaná,
Yaz Terajima
Does the transmission of monetary policy change when interest rates are low or negative? We shed light on this question by analyzing the international bank lending channels of monetary policy using regulatory data on banks from four small open economies: Canada, Chile, the Czech Republic and Norway.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
International topics,
Monetary policy transmission
JEL Code(s):
E,
E4,
E43,
E5,
E52,
E58,
F,
F3,
F34,
F4,
F42,
G,
G2,
G21,
G28
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
Topic(s):
Inflation targets,
Monetary policy communications,
Monetary policy framework
JEL Code(s):
C,
C9,
C92,
E,
E3,
E31,
E5,
E52,
E7
The impact of the Bank of Canada’s Government Bond Purchase Program
Staff Analytical Note 2021-23
Rohan Arora,
Sermin Gungor,
Joe Nesrallah,
Guillaume Ouellet Leblanc,
Jonathan Witmer
We assess the response of Government of Canada bond yields to the Bank of Canada’s initial announcement of the Government Bond Purchase Program (GBPP) as well as to the Bank’s later GBPP purchase operations.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Monetary policy,
Monetary policy implementation,
Monetary policy transmission
JEL Code(s):
E,
E5,
E52,
E58,
E6,
E63
More Money for Some: The Redistributive Effects of Open Market Operations
Staff Working Paper 2021-46
Christian Bustamante
I use a search-theoretic model of money to study how open market operations affect the conduct of monetary policy and what this means for households along the wealth distribution. In the model, households vary in the size and composition of their portfolios, which in turn implies that they may be unevenly affected by open market operations.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Monetary policy,
Monetary policy implementation,
Monetary policy transmission
JEL Code(s):
E,
E2,
E21,
E3,
E32,
E5,
E52
The Bank of Canada’s “Horse Race” of Alternative Monetary Policy Frameworks: Some Interim Results from Model Simulations
Staff Discussion Paper 2021-13
José Dorich,
Rhys R. Mendes,
Yang Zhang
Bank of Canada staff are running a “horse race” of alternative monetary policy frameworks in the lead-up to 2021 renewal of the Bank’s monetary policy framework. This paper summarizes some interim results of model simulations from their research.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Central bank research,
Economic models,
Inflation targets,
Monetary policy,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
E,
E2,
E27,
E3,
E4,
E5,
E52,
E58
Monetary Policy and the Persistent Aggregate Effects of Wealth Redistribution
Staff Working Paper 2021-38
Martin Kuncl,
Alexander Ueberfeldt
Monetary policy in the presence of nominal debt and labour supply heterogeneity creates a policy trade-off: a short-term economic stimulus leads to persistently reduced output over the medium term. Price-level targeting weakens this trade-off and is better able to stabilize inflation and output than inflation targeting.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
E,
E2,
E21,
E5,
E50
Exploring the potential benefits of inflation overshooting
Staff Analytical Note 2021-16
Robert Amano,
Marc-André Gosselin,
Kurt See
After a period with the interest rate at the effective lower bound, temporarily overshooting inflation may offer important economic benefits. This may be especially true for vulnerable segments of the population, such as workers with low attachment to the labour force and the long-term unemployed.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Inflation targets,
Labour markets,
Monetary policy,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E5,
E52,
J,
J2,
J20