November 23, 2011 Canada’s Inflation-Targeting Regime Enhances Economic Well-Being of Canadians, Says Bank of Canada Governor Mark Carney Media Relations Montréal, Quebec The effectiveness of Canada’s inflation-targeting regime, adopted in 1991, is well established, and partly responsible for the strength and relative stability of the Canadian economy, Governor Mark Carney of the Bank of Canada said today. “Over the past twenty years, Canadians have enjoyed a more stable and prosperous economic environment. Even during the recent crisis, […] Content Type(s): Press, Press releases
April 15, 2006 Issues in Inflation Targeting: A Summary of the Bank of Canada Conference Held 28-29 April 2005 Bank of Canada Review - Spring 2006 Robert Amano, Raphael Solomon The Bank of Canada's 2005 conference focused on two critical issues: price-level targets versus inflation targets, and the appropriate level of inflation. Session topics included new methodological approaches to examining the validity of the New Keynesian Phillips curve for Canada; the monetary policy implications of border effects and the financial-accelerator model; the zero lower bound on nominal interest rates; and inflation and welfare in general-equilibrium macroeconomic models. A panel of invited speakers discussed the issues of each session, and two distinguished speakers gave their perspectives on inflation. Content Type(s): Publications, Bank of Canada Review articles
Inflation Targeting and Liquidity Traps Under Endogenous Credibility Staff working paper 2019-9 Cars Hommes, Joep Lustenhouwer Policy implications are derived for an inflation-targeting central bank, whose credibility is endogenous and depends on its past ability to achieve its targets. This is done in a New Keynesian framework with heterogeneous and boundedly rational expectations. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C6, C62, E, E3, E32, E5, E52 Research Theme(s): Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission
November 30, 2020 Research Update - November 2020 This monthly newsletter features the latest research publications by Bank of Canada economists including external publications and working papers published on the Bank of Canada’s website. Content Type(s): Staff research, Research newsletters
October 24, 2016 Joint Statement of the Government of Canada and the Bank of Canada on the Renewal of the Inflation-Control Target Media Relations Ottawa, Ontario The Government of Canada and the Bank of Canada agreed that the inflation target will continue to be defined in terms of the 12-month rate of change in the total CPI, that it will continue to be the 2 per cent mid-point of the 1 to 3 per cent inflation-control range, and that the agreement will run for another five-year period, ending 31 December 2021. Content Type(s): Press, Press releases
February 24, 1998 Inflation-Control Targets Extended Media Relations The Bank of Canada today released a joint statement of the Government of Canada and the Bank of Canada on the extension of the inflation-control targets. Content Type(s): Press, Press releases
Harnessing the benefit of state-contingent forward guidance Staff analytical note 2022-13 Vivian Chu, Yang Zhang A low level of the neutral rate of interest increases the likelihood that a central bank’s policy rate will reach its effective lower bound (ELB) in future economic downturns. In a low neutral rate environment, using an extended monetary policy toolkit including forward guidance helps address the ELB challenge. Using the Bank’s Terms-of-Trade Economic Model, we assess the benefits and limitations of a state-contingent forward guidance implemented within a flexible inflation targeting framework. Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E2, E27, E3, E37, E4, E5, E52, E58 Research Theme(s): Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission, Monetary policy tools and implementation
Endogenous Credibility and Wage-Price Spirals Staff working paper 2024-14 Olena Kostyshyna, Tolga Özden, Yang Zhang We quantitively assess the risks of a wage-price spiral occurring in Canada over history. We find the risk of a wage-price spiral increases when the inflation expectations become unanchored and the credibility of central banks declines. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C2, C22, E, E0, E00, E4, E47, E7 Research Theme(s): Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission
January 30, 2006 Annual Report 2005 In 2005, the Bank of Canada celebrated its 70th anniversary. Since the Bank opened its doors in March 1935, it has evolved into a national institution at the heart of Canada’s economy. We had a lot to celebrate in 2005—particularly our progress over the past 70 yearsand our continuing contribution to the economic and financial well-being of Canadians. Content Type(s): Publications, Annual Report