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March 26, 2015

Financial volatility a natural consequence of monetary policy normalization, says Bank of Canada Governor Stephen S. Poloz

The recent rise in financial market volatility reflects a global economy that is beginning the process of getting back to normal, Bank of Canada Governor Stephen S. Poloz said on Thursday. In a speech to the Canada-United Kingdom Chamber of Commerce, Governor Poloz discussed the recent rise in financial market volatility and low long-term bond […]
Content Type(s): Press, Press releases

Understanding Monetary Policy and its Effects: Evidence from Canadian Firms Using the Business Outlook Survey

Staff working paper 2017-24 Matthieu Verstraete, Lena Suchanek
This paper shows (i) that business sentiment, as captured by survey data, matters for monetary policy decisions in Canada, and (ii) how business perspectives are affected by monetary policy shocks. Measures of business sentiment (soft data) are shown to have systematic explanatory power for monetary policy decisions over and above typical Taylor rule variables.
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