September 18, 2002 Bank of Canada Announces Economic Research Fellowship Program Media Relations Vancouver, British Columbia The Bank of Canada is launching a Fellowship Program to encourage economic research at Canadian universities, Governor David Dodge announced today during a speech at the University of British Columbia. The Governor said the program is a natural extension of the Bank of Canada's commitment to promoting high-quality research. Content Type(s): Press, Press releases Source(s): Fellowship Program
September 4, 2002 The New Investment Framework for Receiver General Cash Balances The Department of Finance and the Bank of Canada are releasing final terms and conditions for participating in morning auctions of Receiver General balances. These auctions are the primary means by which the government invests its short-term Canadian-dollar cash balances. Content Type(s): Press, Market notices
September 4, 2002 Bank of Canada keeps target for the overnight rate at 2 3/4 per cent Media Relations Ottawa, Ontario The Bank of Canada today announced that it is maintaining its target for the overnight rate at 2 3/4 per cent. The operating band for the overnight rate is unchanged, and the Bank Rate remains at 3 per cent. Content Type(s): Press, Press releases
August 31, 2002 Macroeconomic Stabilization Policy in Canada Remarks David Dodge Symposium sponsored by the Federal Reserve Bank of Kansas City Jackson Hole, Wyoming What I propose to do on this panel today is to talk about stabilization policy and policy co-operation from the viewpoint of an industrial country that has a floating exchange rate and both an explicit inflation target for monetary policy and a clear objective for fiscal policy. Content Type(s): Press, Speeches and appearances, Remarks
August 29, 2002 Bank of Canada releases 2003 schedule of dates for policy interest rate announcements Media Relations Ottawa, Ontario The Bank of Canada today released its 2003 schedule of eight dates for announcing decisions on its key policy interest rate and, at the same time, confirmed the announcement dates for the remainder of this year. Content Type(s): Press, Press releases
August 21, 2002 Monetary Policy and Uncertainty Bank of Canada Review - Summer 2002 Paul Jenkins, David Longworth Central banks must cope with considerable uncertainty about what will happen in the economy when formulating monetary policy. This article describes the different types of uncertainty that arise and looks at examples of uncertainty that the Bank has recently encountered. It then reviews the strategies employed by the Bank to deal with this problem. The other articles in this special issue focus on three of these major strategies. Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Monetary policy and uncertainty, Monetary policy framework
August 21, 2002 Bank of Canada Review - Summer 2002 Cover page Welland Canal Note The note, signed by Merritt as company president, measures 184 mm by 82 mm and forms part of the National Currency Collection, Bank of Canada. Photography by James Zagon, Ottawa. Content Type(s): Publications, Bank of Canada Review
August 20, 2002 Information and Analysis for Monetary Policy: Coming to a Decision Bank of Canada Review - Summer 2002 Tiff Macklem This article outlines one of the Bank's key approaches to dealing with the uncertainty that surrounds decisions on monetary policy: the consideration of a wide range of information from a variety of sources. More specifically, it describes the information and analysis that the monetary policy decision-makers—the Governing Council of the Bank of Canada—receive in the two or three weeks leading up to a decision on the setting of the policy rate—the target overnight interest rate. The article also describes how the Governing Council reaches this decision. Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Monetary and financial indicators, Monetary policy framework, Monetary policy implementation
August 19, 2002 Models in Policy-Making Bank of Canada Review - Summer 2002 Donald Coletti, Stephen Murchison This article examines another strategy in the Bank's approach to dealing with an uncertain world: the use of carefully articulated models to produce economic forecasts and to examine the implications of the various risks to those forecasts. Economic models are deliberate simplifications of a complex world that allow economists to make predictions that are reasonably accurate and that can be easily understood and communicated. By using several models, based on competing paradigms, the Bank minimizes policy errors that could result from relying on one view of the world and one philosophy of model design. The authors review some of the models currently used at the Bank, as well as the role of judgment in the projection process. Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Economic models
August 18, 2002 The Role of Simple Rules in the Conduct of Canadian Monetary Policy Bank of Canada Review - Summer 2002 Denise Côté, Jean-Paul Lam, Ying Liu, Pierre St-Amant The third strategy employed by the Bank when dealing with uncertainty is the consideration of appropriate simple reaction functions or "rules" for the setting of the policy interest rate. Since John Taylor's presentation of his much-discussed rule, research on simple policy rules has exploded. Simple rules have several advantages. In particular, they are easy to construct and communicate and are believed by some to be robust, in the sense of generating good results in a variety of economic models. This article provides an overview of the recent research regarding the usefulness and robustness of simple monetary policy rules, particularly in models of the Canadian economy. It also describes and explains the role of simple rules in the conduct of monetary policy in Canada. Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Monetary policy and uncertainty