May 12, 2022 The perfect storm Remarks Toni Gravelle Association des économistes québécois Montréal, Quebec Deputy Governor Toni Gravelle discusses the commodity price shock and its implications for the Canadian economy and monetary policy. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Coronavirus disease (COVID-19), Domestic demand and components, Exchange rates, Expectations, Inflation and prices, Inflation: costs and benefits, Interest rates, International topics, Labour markets, Monetary policy, Monetary policy and uncertainty, Monetary policy communications, Recent economic and financial developments
May 12, 2022 How commodity prices affect our economy Speech summary Toni Gravelle Association des économistes québécois Montréal, Quebec Deputy Governor Toni Gravelle talks about the spike in commodity prices over the past two years, the impact on inflation and how the Bank of Canada is responding. Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Coronavirus disease (COVID-19), Domestic demand and components, Exchange rates, Expectations, Inflation and prices, Inflation: costs and benefits, Interest rates, International topics, Labour markets, Monetary policy, Monetary policy and uncertainty, Monetary policy communications, Recent economic and financial developments
August 13, 2020 Understanding inflation Inflation is a persistent rise in the average level of prices over time. Content Type(s): Explainers Topic(s): Inflation and prices, Inflation: costs and benefits
March 6, 2020 Under the microscope James (Jim) C. MacGee, Rhys R. Mendes Evaluating our approach to monetary policy Content Type(s): Publications, The Economy, Plain and Simple Topic(s): Credibility, Inflation targets, Inflation: costs and benefits, Interest rates, Monetary policy framework, Price stability
February 21, 2019 Price check: Inflation in Canada Sharon Kozicki, Jill Vardy, Laurence Savoie-Chabot Why prices change, and what it means for the economy. Content Type(s): Publications, The Economy, Plain and Simple Topic(s): Business fluctuations and cycles, Credibility, Expectations, Inflation and prices, Inflation targets, Inflation: costs and benefits, Monetary policy framework, Monetary policy transmission, Price stability
The Welfare Cost of Inflation Revisited: The Role of Financial Innovation and Household Heterogeneity Staff Working Paper 2018-40 Shutao Cao, Césaire Meh, José-Víctor Ríos-Rull, Yaz Terajima We document that, across households, the money consumption ratio increases with age and decreases with consumption, and that there has been a large increase in the money consumption ratio during the recent era of very low interest rates. We construct an overlapping generations (OLG) model of money holdings for transaction purposes subject to age (older households use more money), cohort (younger generations are exposed to better transaction technology), and time effects (nominal interest rates affect money holdings). Content Type(s): Staff research, Staff working papers Topic(s): Inflation: costs and benefits JEL Code(s): E, E2, E21, E4, E41
November 1, 2016 25 Years of Inflation Targets: Certainty for Uncertain Times Remarks Stephen S. Poloz Business Council of British Columbia Vancouver, British Columbia Governor Stephen S. Poloz discusses the renewal of Canada’s inflation-targeting agreement and how it continues to help the economy. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Central bank research, Credibility, Inflation targets, Inflation: costs and benefits, Monetary aggregates, Monetary policy framework
The Optimal Level of the Inflation Target: A Selective Review of the Literature and Outstanding Issues Staff Discussion Paper 2015-8 Oleksiy Kryvtsov, Rhys R. Mendes Bank of Canada research done prior to the most recent renewal of the inflation-control agreement in 2011 concluded that the benefits associated with a target below 2 per cent were insufficient to justify the increased risk of being constrained by the zero lower bound (ZLB) on nominal interest rates. Content Type(s): Staff research, Staff discussion papers Topic(s): Inflation targets, Inflation: costs and benefits, Monetary policy framework JEL Code(s): E, E5, E52, E58
Inflation and Growth: A New Keynesian Perspective Staff Working Paper 2012-23 Robert Amano, Thomas J. Carter, Kevin Moran The long-run relation between growth and inflation has not yet been studied in the context of nominal price and wage rigidities, despite the fact that these rigidities now figure prominently in workhorse macroeconomic models. Content Type(s): Staff research, Staff working papers Topic(s): Inflation: costs and benefits JEL Code(s): E, E3, E31, E5, E52, O, O3, O31, O4, O42
Money and Costly Credit Staff Working Paper 2011-7 Mei Dong I study an economy in which money and credit coexist as means of payment and the settlement of credit requires money. The model extends recent developments in microfounded monetary theory to address the choice of payment methods and the effects of inflation. Whether a buyer uses money or credit depends on the fixed cost of credit and the inflation rate. Content Type(s): Staff research, Staff working papers Topic(s): Credit and credit aggregates, Inflation: costs and benefits JEL Code(s): E, E4, E41, E5, E50