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278
result(s)
Low Inflation in Advanced Economies: Facts and Drivers
Staff Analytical Note 2017-16
Sanjana Bhatnagar,
Anne-Katherine Cormier,
Patrisha de Leon-Manlagnit,
Elise Martin,
Vikram Rai,
Renaud St-Cyr,
Subrata Sarker,
Kristina Hess
Since the global financial crisis, core inflation has been persistently below target in most advanced economies. Recently, it has weakened further in several advanced economies despite gradually diminishing slack. This note reviews recent developments in core inflation across advanced economies and identifies distinctive patterns across regions.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Inflation and prices,
International topics
JEL Code(s):
E,
E0,
E3,
E31,
F,
F0
Redistributive Effects of a Change in the Inflation Target
Staff Analytical Note 2017-13
Robert Amano,
Thomas J. Carter,
Yaz Terajima
In light of the financial crisis and its aftermath, several economists have argued that inflation-targeting central banks should reconsider the level of their inflation targets. While the appropriate level for the inflation target remains an open question, it’s important to note that any transition to a new target would entail certain costs.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Inflation targets,
Monetary policy framework
JEL Code(s):
E,
E5,
E52,
E58
Global Trade Flows: Revisiting the Exchange Rate Elasticities
Staff Working Paper 2017-41
Matthieu Bussière,
Guillaume Gaulier,
Walter Steingress
This paper contributes to the debate on the magnitude of exchange rate elasticities by providing a set of price and quantity elasticities for 51 advanced and emerging-market economies. Specifically, for each of these countries we report the elasticity of trade prices and trade quantities on both the export and on the import sides, as well as the reaction of the trade balance.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
Inflation and prices,
International topics
JEL Code(s):
C,
C5,
C51,
F,
F1,
F14,
F3,
F31,
F33,
F4,
F41
Changes in Monetary Regimes and the Identification of Monetary Policy Shocks: Narrative Evidence from Canada
Staff Working Paper 2017-39
Julien Champagne,
Rodrigo Sekkel
We use narrative evidence along with a novel database of real-time data and forecasts from the Bank of Canada's staff economic projections from 1974 to 2015 to construct a new measure of monetary policy shocks and estimate the effects of monetary policy in Canada.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Central bank research,
Econometric and statistical methods,
Exchange rate regimes,
Inflation and prices,
Inflation targets,
Interest rates,
Monetary policy,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E32,
E4,
E43,
E5,
E52,
E58
Downward Nominal Wage Rigidity in Canada: Evidence Against a “Greasing Effect”
Staff Working Paper 2017-31
Joel Wagner
The existence of downward nominal wage rigidity (DNWR) has often been used to justify a positive inflation target. It is traditionally assumed that positive inflation could “grease the wheels” of the labour market by putting downward pressure on real wages, easing labour market adjustments during a recession.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation targets,
Labour markets
JEL Code(s):
E,
E2,
E24,
E5,
E52
Downward Nominal Wage Rigidity, Inflation and Unemployment: New Evidence Using Micro‐Level Data
Staff Analytical Note 2017-6
Dany Brouillette,
Natalia Kyui
Recent evidence suggests that the extent of downward nominal wage rigidity (DNWR) in the Canadian labour market has risen following the 2008–09 recession (see Brouillette, Kostyshyna and Kyui 2016).
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Econometric and statistical methods,
Inflation and prices,
Labour markets
JEL Code(s):
E,
E2,
E24,
E3,
E31,
J,
J3,
J30
Downward Nominal Wage Rigidity Meets the Zero Lower Bound
Staff Working Paper 2017-16
Robert Amano,
Stefano Gnocchi
We add downward nominal wage rigidity to a standard New Keynesian model with sticky prices and wages, where the zero lower bound on nominal interest rates is allowed to bind. We find that wage rigidity not only reduces the frequency of zero bound episodes but also mitigates the severity of corresponding recessions.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation targets,
Labour markets,
Monetary policy framework
JEL Code(s):
E,
E2,
E24,
E3,
E32,
E5,
E52
Price-Level Dispersion versus Inflation-Rate Dispersion: Evidence from Three Countries
Staff Working Paper 2017-3
David Fielding,
Christopher Hajzler,
James (Jim) C. MacGee
Inflation can affect both the dispersion of commodity-specific price levels across locations (relative price variability, RPV) and the dispersion of inflation rates (relative inflation variability, RIV). Some menu-cost models and models of consumer search suggest that the RIV-inflation relationship could differ from the RPV-inflation relationship.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices
JEL Code(s):
E,
E3,
E31,
E5,
E50
Comparing Forward Guidance and Neo-Fisherianism as Strategies for Escaping Liquidity Traps
Staff Analytical Note 2016-16
Robert Amano,
Thomas J. Carter,
Rhys R. Mendes
What path should policy-makers select for the nominal rate when faced with a liquidity trap during which the effective lower bound binds?
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Central bank research,
Economic models,
Inflation and prices,
Interest rates,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
E,
E4,
E5