294
result(s)
Changing Fortunes: Long-Termism—G-Zero, Artificial Intelligence and Debt
Staff Discussion Paper 2019-12
Stephen S. Poloz
This paper discusses three long-term forces that are acting on the global economy and their implications for companies and policy-makers.
Content Type(s):
Staff Research,
Staff Discussion Papers
Topic(s):
Financial stability,
International topics,
Monetary Policy,
Trade Integration,
Uncertainty and monetary policy
JEL Code(s):
E,
E6,
E63,
F,
F0,
F02,
F1,
F15,
F5,
F53,
F6,
H,
O,
O1,
O11,
O3,
O33
Technological Progress and Monetary Policy: Managing the Fourth Industrial Revolution
Staff Discussion Paper 2019-11
Stephen S. Poloz
This paper looks at the implications for monetary policy of the widespread adoption of artificial intelligence and machine learning, which is sometimes called the “fourth industrial revolution.”
Content Type(s):
Staff Research,
Staff Discussion Papers
Topic(s):
Economic models,
Financial stability,
Monetary policy framework,
Uncertainty and monetary policy
JEL Code(s):
C,
C5,
E,
E3,
O,
O1,
O11,
O3,
O33
A Comprehensive Evaluation of Measures of Core Inflation in Canada: An Update
Staff Discussion Paper 2019-9
Helen Lao,
Ceciline Steyn
We provide an updated evaluation of the value of various measures of core inflation that could be used in the conduct of monetary policy. We find that the Bank of Canada’s current preferred measures of core inflation—CPI-trim, CPI-median and CPI-common—continue to outperform alternative core measures across a range of criteria.
Content Type(s):
Staff Research,
Staff Discussion Papers
Topic(s):
Inflation and prices,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E5,
E52
The Effects of Inflation Targeting for Financial Development
Staff Analytical Note 2019-21
Geoffrey R. Dunbar,
Amy (Qijia) Li
The adoption of inflation targeting (IT) by central banks leads to an increase of 10 to 20 percent in measures of financial development, with a lag. We also find evidence that the financial sector benefits of IT adoption were higher for early-adopting central banks.
Content Type(s):
Staff Research,
Staff Analytical Notes
Topic(s):
Financial Institutions,
Inflation targets,
Transmission of monetary policy
JEL Code(s):
E,
E4,
E44,
E5,
E58
Central Bank Communication That Works: Lessons from Lab Experiments
Staff Working Paper 2019-21
Oleksiy Kryvtsov,
Luba Petersen
We use controlled laboratory experiments to test the causal effects of central bank communication on economic expectations and to distinguish the underlying mechanisms of those effects. In an experiment where subjects learn to forecast economic variables, we find that central bank communication has a stabilizing effect on individual and aggregate outcomes and that the size of the effect varies with the type of communication.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Monetary policy implementation,
Transmission of monetary policy
JEL Code(s):
C,
C9,
D,
D8,
D84,
E,
E3,
E5,
E52
Central Bank Digital Currency and Banking
Staff Working Paper 2019-20
Jonathan Chiu,
Mohammad Davoodalhosseini,
Janet Hua Jiang,
Yu Zhu
Many central banks are considering whether to issue a new form of electronic money that would be accessible to the public. This new form is usually called a central bank digital currency (CBDC). Issuing a CBDC would have implications for the financial system and, more broadly, the wider economy.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Digital Currencies and Fintech,
Market structure and pricing,
Monetary Policy,
Monetary policy framework
JEL Code(s):
E,
E5,
E50,
E58
Labor Mobility in a Monetary Union
Staff Working Paper 2019-15
Daniela Hauser,
Martin Seneca
The optimal currency literature has stressed the importance of labor mobility as a precondition for the success of monetary unions. But only a few studies formally link labor mobility to macroeconomic adjustment and policy. In this paper, we study macroeconomic dynamics and optimal monetary policy in an economy with cyclical labor flows across two distinct regions that share trade links and a common monetary framework.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Business fluctuations and cycles,
Economic models,
Labour markets,
Monetary policy framework,
Regional economic developments
JEL Code(s):
E,
E3,
E32,
E5,
E52,
F,
F4
The Distributional Effects of Conventional Monetary Policy and Quantitative Easing: Evidence from an Estimated DSGE Model
Staff Working Paper 2019-6
Stefan Hohberger,
Romanos Priftis,
Lukas Vogel
This paper compares the distributional effects of conventional monetary policy and quantitative easing (QE) within an estimated open-economy DSGE model of the euro area.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Economic models,
Interest rates,
Monetary Policy,
Transmission of monetary policy
JEL Code(s):
E,
E4,
E44,
E5,
E52,
F,
F4,
F41
Limited Commitment, Endogenous Credibility and the Challenges of Price-level Targeting
Staff Working Paper 2018-61
Gino Cateau,
Malik Shukayev
This paper studies the cost of limited commitment when a central bank has the discretion to adjust policy whenever the costs of honoring its past commitments become high. Specifically, we consider a central bank that seeks to implement optimal policy in a New Keynesian model by committing to a price-level target path.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Credibility,
Inflation targets,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E5,
E52
Credibility, Flexibility and Renewal: The Evolution of Inflation Targeting in Canada
Staff Discussion Paper 2018-18
Thomas J. Carter,
Rhys R. Mendes,
Lawrence L. Schembri
In 1991, Canada became the second country to adopt an inflation target as a central pillar of its monetary policy framework. The regime has proven much more successful than initially expected, both in achieving price stability and in stabilizing the real economy against a wide range of shocks.
Content Type(s):
Staff Research,
Staff Discussion Papers
Topic(s):
Credibility,
Inflation targets,
Monetary Policy,
Monetary policy framework
JEL Code(s):
E,
E5,
E52,
E58,
E6,
E61