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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.

A Structural Interpretation of the Recent Weakness in Business Investment

Staff analytical note 2017-7 Russell Barnett, Rhys R. Mendes
Since 2012, business investment growth has slowed considerably in advanced economies, averaging a little less than 2 per cent versus the 4 per cent growth rates experienced in the period leading up to crisis. Several recent studies have attributed a large part of the weakness in business investment to cyclical factors, including soft aggregate demand, and, to a lesser degree, heightened uncertainty and tighter financial conditions.

Downward Nominal Wage Rigidity in Canada: Evidence Against a “Greasing Effect”

Staff working paper 2017-31 Joel Wagner
The existence of downward nominal wage rigidity (DNWR) has often been used to justify a positive inflation target. It is traditionally assumed that positive inflation could “grease the wheels” of the labour market by putting downward pressure on real wages, easing labour market adjustments during a recession.
September 30, 2015

Changes to the Bank of Canada’s Framework for Financial Market Operations

On 5 May, 2015, the Bank of Canada published a consultation paper outlining proposed changes to its framework for financial market operations. Interested parties were invited to provide comments, and the Bank also held a series of meetings with industry associations and other stakeholders. Summary of comments received Respondents were supportive of the overall direction […]
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