November 14, 2005 Inflation Targeting in Canada: Design, Lessons, and Challenges Remarks David Dodge Conference on the occasion of the 80th anniversary of the Banco de Mexico Mexico City, Mexico Today, I want to share with all of you Canada's perspective on the design of an inflation-targeting system, some of the lessons we have learned over almost 15 years of experience with explicit inflation targets, and some of the challenges that remain. This topic is timely, because the Bank of Canada's inflation-targeting agreement with the Canadian government is up for renewal next year, and I am pleased to note that, earlier today, the Government announced its intention to renew our agreement for another five years. Content Type(s): Press, Speeches and appearances, Remarks
December 7, 2023 What population growth means for the economy and inflation Speech summary Toni Gravelle Windsor-Essex Regional Chamber of Commerce Windsor, Ontario Speaking a day after we decided to hold interest rates steady at 5%, Deputy Governor Toni Gravelle discusses immigration, inflation and the role that newcomers play in helping our economy grow. Content Type(s): Press, Speeches and appearances, Speech summaries Subject(s): Monetary policy, Economy/Economic growth, Inflation, Inflation targeting framework
October 23, 2024 Monetary Policy Report—October 2024—In focus: Prices change all the time, and some change more often than others. How often prices change can affect how quickly shifts in economic conditions affect inflation.
Non-homothetic Preferences and the Demand Channel of Inflation Staff working paper 2025-30 Stephen Murchison An alternative to the standard CES aggregator, based on non-homothetic household preferences, is proposed. Specifically, the elasticity of substitution between goods declines during periods of strong per-capita consumption and vice versa, giving firms an incentive to adjust their desired markup in response to the state of demand. Empirical evidence favouring a direct role for per-capita consumption demand in inflation determination for Canada is presented. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E2, E27, E5, E52, Q, Q4, Q43, Q5, Q58 Research Theme(s): Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures
May 1, 1997 Price Stability, Inflation Targets and Monetary Policy Proceedings of a conference - May 1997 (proceedings volume, available in electronic format only) Content Type(s): Conferences and workshops
June 14, 2014 Workshop on Price Dynamics, Inflation and Monetary Policy Workshop held on 14 June 2014 Content Type(s): Conferences and workshops
November 7, 2011 Renewal of the Inflation-Control Target (November 2011) Commentary and technical data relating to the 2011 target renewal. Content Type(s): Background materials
December 13, 2007 Central Bank Performance under Inflation Targeting Bank of Canada Review - Winter 2007-2008 Marc-André Gosselin Gosselin examines and reports on the various factors that contribute to successful inflation targeting. Using a panel of 21 inflation-targeting countries over the period 1990Q1-2007Q2, Gosselin finds that the ability of central banks to hit their targets varies considerably. Some of these differences can be explained by exchange rate fluctuations, fiscal deficits, and differences in financial development. Others are explained by differences in the targeting framework itself and the manner in which it is implemented. Content Type(s): Publications, Bank of Canada Review articles
December 12, 2005 Our Approach to Monetary Policy: Inflation Targeting Remarks David Dodge Regina Chamber of Commerce Regina, Saskatchewan This year also marks the 70th anniversary of the creation of the Bank of Canada, and we too have taken the time to celebrate our contributions to Canada. At such times, while it is appropriate to look back and celebrate history and accomplishments, it is also a good opportunity to look forward and think about where we are headed. In this spirit, I'd like to talk to you today about one of our main responsibilities; that is, the conduct of monetary policy. Content Type(s): Press, Speeches and appearances, Remarks
November 11, 2009 Declining Inflation Persistence in Canada: Causes and Consequences Bank of Canada Review - Winter 2009-2010 Rhys R. Mendes, Stephen Murchison The persistence of both core and total consumer price index inflation in Canada has declined significantly since the 1980s. In addition to providing up-to-date estimates of inflation persistence, this article examines possible reasons for the decline suggested in the literature. The role played by monetary policy, through its effect on price- and wage-setting behaviour, is distinguished from possible changes to the structure of the economy that are independent of monetary policy. The authors also discuss the implications for monetary policy of low structural persistence in inflation, including the choice of an inflation-targeting regime versus a price-level-targeting regime. Content Type(s): Publications, Bank of Canada Review articles