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1569 Results

November 11, 2009

Declining Inflation Persistence in Canada: Causes and Consequences

The persistence of both core and total consumer price index inflation in Canada has declined significantly since the 1980s. In addition to providing up-to-date estimates of inflation persistence, this article examines possible reasons for the decline suggested in the literature. The role played by monetary policy, through its effect on price- and wage-setting behaviour, is distinguished from possible changes to the structure of the economy that are independent of monetary policy. The authors also discuss the implications for monetary policy of low structural persistence in inflation, including the choice of an inflation-targeting regime versus a price-level-targeting regime.
June 11, 2015

Canadian Open-End Mutual Funds: An Assessment of Potential Vulnerabilities

The authors examine the liquidity and leverage characteristics of Canadian long-term, open-end mutual funds in terms of their potential systemic effects on the Canadian mutual fund sector and on the Canadian financial system more broadly. In their overall assessment of this sector, they consider the regulation, market size and ownership structure of mutual funds in Canada and provide observations about the industry globally.
Content Type(s): Publications, Financial System Review articles JEL Code(s): G, G2, G23, G28

The Role of Corporate Saving over the Business Cycle: Shock Absorber or Amplifier?

Staff working paper 2018-59 Xiaodan Gao, Shaofeng Xu
We document countercyclical corporate saving behavior with the degree of countercyclicality varying nonmonotonically with firm size. We then develop a dynamic stochastic general equilibrium model with heterogeneous firms to explain the pattern and study its implications for business cycles.

Income Inequality in Canada

Staff discussion paper 2022-16 Sarah Burkinshaw, Yaz Terajima, Carolyn A. Wilkins
Data show that income inequality in Canada increased substantially during the 1980s and first half of the 1990s but has been relatively stable over the past 25 years. This increase was felt mainly by low-income earners and younger people, while older people benefited from higher retirement income.

Has wage setting changed in Canada? Evidence from the pre-pandemic 2020 Wage-Setting Survey

Staff analytical note 2022-10 David Amirault, Sarah Miller, Matthieu Verstraete
Just before the pandemic began, the Bank of Canada conducted the 2020 Wage-Setting Survey. The goal was to explore the unusual trend of subdued wage growth in 2018 and 2019 despite a tightening in the labour market. Although this wage puzzle was beginning to resolve at the time of the survey, results highlight changes in several factors that may have important impacts on wage dynamics.
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