(Un)Conventional Monetary and Fiscal Policy Staff working paper 2023-6 Jing Cynthia Wu, Yinxi Xie We build a tractable New Keynesian model to study and compare four types of monetary and fiscal policy: policy rate adjustments, quantitative easing, lump-sum fiscal transfers and government spending. We find that tax-financed fiscal policy is more stimulative than debt-financed policy, and optimal policy coordination needs at least two of these four policy instruments. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E6, E61, E62, E63 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission, Monetary policy tools and implementation, Real economy and forecasting
Ecosystem Models for a Central Bank Digital Currency: Analysis Framework and Potential Models Staff discussion paper 2024-13 Youming Liu, Francisco Rivadeneyra, Edona Reshidi, Oleksandr Shcherbakov, André Stenzel This note analyzes different economic models of a central bank digital currency (CBDC) ecosystem where the central bank chooses different levels of market involvement and usage of policy levers. The analysis suggests that there are trade-offs between the costs to the central bank and its ability to achieve policy goals like universal access. Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E5, E58, E6, E61, L, L5 Research Theme(s): Money and payments, Digital assets and fintech, Payment and financial market infrastructures
May 11, 2000 Release of the Monetary Policy Report Opening statement Gordon Thiessen This morning we released our latest Monetary Policy Report. The outlook that we see for Canadian economic growth and inflation is very positive. The economy has outperformed expectations since our November Report and the underlying trend of inflation has been lower than expected. With the global economy gaining momentum and greater demand at home, we […] Content Type(s): Press, Speeches and appearances, Opening statements
July 15, 2003 Bank of Canada lowers target for the overnight rate by 1/4 percentage point to 3 per cent Media Relations Ottawa, Ontario The Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of one percentage point to 3 per cent. Content Type(s): Press, Press releases
July 16, 2002 Bank of Canada raises overnight rate target by 1/4 percentage point to 2 3/4 per cent Media Relations Ottawa, Ontario The Bank of Canada today announced that it is raising its target for the overnight rate by one-quarter of one percentage point to 2 3/4 per cent. The operating band for the overnight rate is correspondingly increased, and the Bank Rate is now 3 per cent. Content Type(s): Press, Press releases
October 31, 2021 Research Update - October 2021 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 Opening Statement before the House of Commons Standing Committee on Finance Opening statement Stephen S. Poloz House of Commons Standing Committee on Finance Ottawa, Ontario Good afternoon, Mr. Chairman and committee members. Senior Deputy Governor Wilkins and I are happy to be before you today. It is our normal practice to appear before this committee twice a year to discuss the Bank’s Monetary Policy Report (MPR). We published our latest MPR last week and are happy to answer questions about […] Content Type(s): Press, Speeches and appearances, Opening statements
January 25, 2023 Monetary Policy Report – January 2023 Inflation in Canada is still too high but has declined from its peak. As the effects of higher interest rates continue to spread through the economy, and with declines in energy prices and improved supply chains, inflation is projected to fall to around 3% in the middle of 2023 and reach the 2% target in 2024. Content Type(s): Publications, Monetary Policy Report
February 28, 2015 Research Update - February 2015 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
June 28, 2019 Business Outlook Survey—Summer 2019 Results from the summer Business Outlook Survey point to a slight improvement in business sentiment after a moderation in the previous survey. Investment and hiring intentions continue to be healthy. Content Type(s): Publications, Business Outlook Survey