A Comparison of Twelve Macroeconomic Models of the Canadian Economy Technical Report No. 94 Denise Côté, John Kuszczak, Jean-Paul Lam, Ying Liu, Pierre St-Amant In this report, the authors examine and compare twelve private and public sector models of the Canadian economy with respect to their paradigm, structure, and dynamic properties. These open-economy models can be grouped into two economic paradigms. Content Type(s): Staff research, Technical reports Research Topic(s): Economic models, Monetary policy and uncertainty JEL Code(s): C, C5, E, E5, E52, E58
Money in the Bank (of Canada) Technical Report No. 93 David Longworth With the demise of monetary targeting over the past 20 years in many major countries, the question has arisen as to whether central banks should look at money at all when formulating and conducting monetary policy. Content Type(s): Staff research, Technical reports Research Topic(s): Monetary aggregates, Monetary policy transmission JEL Code(s): E, E5, E50, E51, E52
The Performance and Robustness of Simple Monetary Policy Rules in Models of the Canadian Economy Technical Report No. 92 Denise Côté, John Kuszczak, Jean-Paul Lam, Ying Liu, Pierre St-Amant In this report, we evaluate several simple monetary policy rules in twelve private and public sector models of the Canadian economy. Our results indicate that none of the simple policy rules we examined is robust to model uncertainty, in that no single rule performs well in all models. Content Type(s): Staff research, Technical reports Research Topic(s): Monetary policy and uncertainty JEL Code(s): E, E5, E52, E58
Alternative Public Spending Rules and Output Volatility Staff Working Paper 2002-37 Jean-Paul Lam, William Scarth One of the central lessons learned from the Great Depression was that adjusting government spending each year to balance the budget increases the volatility of output. Content Type(s): Staff research, Staff working papers Research Topic(s): Economic models, Fiscal policy, Monetary policy transmission JEL Code(s): E, E5, E52, E58, E6, E62
Inflation Expectations and Learning about Monetary Policy Staff Working Paper 2002-30 David Andolfatto, Scott Hendry, Kevin Moran Various measures indicate that inflation expectations evolve sluggishly relative to actual inflation. In addition, they often fail conventional tests of unbiasedness. Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles, Economic models JEL Code(s): E, E4, E47, E5, E52, E58
Nominal Rigidities and Monetary Policy in Canada Since 1981 Staff Working Paper 2002-25 Ali Dib This paper develops and estimates a dynamic, stochastic, general-equilibrium model with price and wage stickiness to analyze monetary policy in Canada. Content Type(s): Staff research, Staff working papers Research Topic(s): Monetary policy framework JEL Code(s): E, E3, E31, E32, E5, E52
Currency Fluctuations, Liability Dollarization, and the Choice of Exchange Rate Regimes in Emerging Markets Staff Working Paper 2002-6 Patrick Osakwe Traditional models of exchange rate regimes ignore the destabilizing effects of sharp and unanticipated exchange rate movements. Content Type(s): Staff research, Staff working papers Research Topic(s): Exchange rate regimes JEL Code(s): E, E5, E52, F, F3, F31, F4, F41
Taylor Rules in the Quarterly Projection Model Staff Working Paper 2002-1 Ben Fung, Dinah Maclean, Jamie Armour In recent years, there has been a lot of interest in Taylor-type rules. Evidence in the literature suggests that Taylor-type rules are optimal in a number of models and are fairly robust across different models. Content Type(s): Staff research, Staff working papers Research Topic(s): Economic models, Monetary policy and uncertainty, Monetary policy framework JEL Code(s): E, E5, E52
The Monetary Transmission Mechanism at the Sectoral Level Staff Working Paper 2001-27 Jean Farès, Gabriel Srour This paper relies on simple vector autoregressions to investigate the monetary transmission mechanism in broad sectors of the Canadian economy. Two types of disaggregation are considered: one at the level of final expenditures, and one at the level of production. Content Type(s): Staff research, Staff working papers Research Topic(s): Monetary policy transmission JEL Code(s): E, E5, E52
Price-Level versus Inflation Targeting in a Small Open Economy Staff Working Paper 2001-24 Gabriel Srour This paper compares two types of monetary policy: price-level targeting and inflation targeting. It reviews recent arguments that favour price-level targeting, and examines how certain factors, such as the nature of the shocks affecting the economy and the degree to which agents are forward-looking, bear upon the arguments. Content Type(s): Staff research, Staff working papers Research Topic(s): Monetary policy framework JEL Code(s): E, E5, E52