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3088 Results

November 22, 2023

Speech: Saint John Region Chamber of Commerce

The cost of high inflation — Governor Tiff Macklem speaks before the Saint John Region Chamber of Commerce (11:45 (ET) approx.).

May 13, 1998

Canada-U.S. long-term interest differentials in the 1990s

Long-term Canada-U.S. interest spreads have changed remarkably during the 1990s. The unusually wide spreads of the first half of the decade have given way to an unprecedented run of negative yield differentials. In this article, the author examines the conceptual aspects of yields on international assets and their application to the Canada-U.S. situation. Prior to 1995, investors were unsure that, over the long run, inflation would meet the targets set by the government and the Bank. Policy credibility was undermined by large budget deficits and political uncertainty. In the second half of the decade, confidence was re-established as the fiscal positions of governments improved, long-run price stability became established, and political concerns about Quebec lessened. As long as these fundamentals hold, long-term rates should remain relatively low, even when short-term rates rise.

Labor Market Shocks and Monetary Policy

Staff working paper 2023-52 Serdar Birinci, Fatih Karahan, Yusuf Mercan, Kurt See
We develop a heterogeneous-agent New Keynesian model featuring a frictional labor market with on-the-job search to quantitatively study the positive and normative implications of employer-to-employer transitions for inflation.
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