Monetary Policy in an AI-Driven Two-Speed Economy Staff working paper 2026-27 Joshua Brault, Maryam Haghighi, Jing Yang We analyze monetary policy responses to AI in a two-sector New Keynesian model, distinguishing augmentation and automation. Both reduce labor demand, requiring accommodation that creates inflation trade-offs. Automation worsens them. Aggregate inflation depends on AI’s form and breadth, making policy stabilization more complex and aggregate data potentially misleading. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E2, E24, E3, E31, E32, E5, E52, J, J2, J23, O, O3, O33 Research Theme(s): Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission, Structural challenges, Digitalization and productivity
October 7, 2004 Global Economic Developments and the Implications for Ontario Remarks David Dodge Ontario Economic Summit Niagara-on-the-Lake, Ontario One theme that I heard repeatedly in Washington is that 2004 is turning out to be a better year than many had thought, particularly over the first half of the year. Indeed, the IMF is now projecting global economic growth of 5 per cent in 2004, which would be a marked improvement from the 3.9 per cent rate seen in 2003. Content Type(s): Press, Speeches and appearances, Remarks
October 23, 2024 Monetary Policy Report—October 2024—In focus: Prices change all the time, and some change more often than others. How often prices change can affect how quickly shifts in economic conditions affect inflation.
Assessing Global Potential Output Growth: April 2019 Staff analytical note 2019-13 Fares Bounajm, Jean-Philippe Cayen, Michael Francis, Christopher Hajzler, Kristina Hess, Guillaume Poulin-Bellisle, Peter Selcuk This note presents the updated estimates of potential output growth for the global economy through 2021. Global potential output is expected to grow by 3.3 per cent per year over the projection horizon. Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E1, E10, E2, E20, O, O4 Research Theme(s): Monetary policy, Real economy and forecasting, Structural challenges, Demographics and labour supply, Digitalization and productivity, International trade, finance and competitiveness
March 2, 2017 Thermometer Rising—Climate Change and Canada’s Economic Future Remarks Timothy Lane Finance and Sustainability Initiative Montréal, Quebec Deputy Governor Tim Lane discusses the implications of climate change—and actions to address it—for Canada’s economy and financial system. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Financial system, Financial markets, Financial stability, Monetary policy, Economic models, Economy/Economic growth
December 23, 2003 The Comparative Growth of Goods and Services Prices Bank of Canada Review - Winter 2003-2004 Edith Gagnon, Patrick Sabourin, Sébastien Lavoie For several decades, the prices of services have been rising more rapidly than the prices of goods in Canada and the other major industrialized countries. In 2002, this gap between the growth rates of these two components of the consumer price index (CPI) widened considerably, leading researchers to ask if this was the beginning of a trend. Analysis reveals, however, that the gap is based on short-term dynamics and that it appears to be independent of the trend in the development of the overall price level. Evidence also shows that the gap is eventually reabsorbed. The authors examine a number of potential causes for the prices of services to rise faster than those of goods. These include the more rapid pace of productivity growth in the goods sector, the greater openness of goods to foreign trade, and stronger growth in the demand for services. Content Type(s): Publications, Bank of Canada Review articles
July 15, 2015 Monetary Policy Report – July 2015 Economic growth in Canada is projected to average just over 1 per cent in 2015 and about 2 1/2 per cent in 2016 and 2017. Content Type(s): Publications, Monetary Policy Report
April 24, 2014 Canada’s Hot - and Not - Economy Remarks Stephen S. Poloz Saskatchewan Trade and Export Partnership Saskatoon, Saskatchewan Bank of Canada Governor Stephen S. Poloz discusses the forces fuelling the differences between the hot - and not so hot - sectors of the economy and regions of the country. Content Type(s): Press, Speeches and appearances, Remarks
October 17, 2006 Bank of Canada keeps target for the overnight rate at 4 1/4 per cent Media Relations Ottawa, Ontario The Bank of Canada today announced that it is maintaining its target for the overnight rate at 4 1/4 per cent. Content Type(s): Press, Press releases
October 1, 2018 Decrypting “Crypto” Remarks Timothy Lane Haskayne School of Business - University of Calgary Calgary, Alberta Deputy Governor Timothy Lane discusses the Bank of Canada’s research and responses to public interest in cryptocurrencies. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Currency, Bank notes, Digital currency, Financial system, Financial stability, Fintech