August 2, 2001 Summer Market Consultations 2001 Overview The objectives of debt strategy are to provide stable, low cost funding for the federal government, and to maintain and enhance a well-functioning market for Government of Canada securities. A key element of the strategy is to maintain a prudent debt structure, with approximately two-thirds of the debt stock in fixed-rate instruments. The Government […]
August 2, 2001 Summer Consultations - Market Views Sought on Issues Relating to the Design and Operation of Government Debt Programs over 2001-02 and Beyond A consultation document on issues relating to the design and operation of government debt programs over 2001-2002 and beyond, prepared jointly by the Department of Finance and the Bank of Canada, is being made public today. Content Type(s): Press, Market notices
Predetermined Prices and the Persistent Effects of Money on Output Staff Working Paper 2001-13 Michael Devereux, James Yetman This paper illustrates a model of predetermined pricing, where firms set a fixed schedule of nominal prices at the time of price readjustment, based on the work of Fischer (1977). This type of price-setting specification cannot produce any excess persistence in a fixed-duration model of staggered prices, but we show that with a probabilistic model of price adjustment, as in Calvo (1983), a predetermined pricing specification can produce excess persistence. Content Type(s): Staff research, Staff working papers Topic(s): Monetary policy transmission JEL Code(s): E, E3, E30
August 1, 2001 Monetary Policy Report Update – August 2001 The Bank’s outlook for inflation and overall economic activity in Canada to the end of 2002 has not changed fundamentally from that presented in the May Monetary Policy Report. Content Type(s): Publications, Monetary Policy Report
August 1, 2001 Bank of Canada releases Monetary Policy Report Update Media Relations The Bank of Canada today released its Update to the May Monetary Policy Report, in which it discusses economic and financial trends in the context of Canada's inflation-control strategy. Content Type(s): Press, Press releases
July 18, 2001 Sheryl Kennedy Named Deputy Governor, Financial Markets Media Relations Sheryl Kennedy, Deputy Governor of the Bank of Canada, has been asked by the Bank's Board of Directors to serve as Deputy Governor, Financial Markets. She takes over the responsibilities formerly carried out by Tim Noël, who passed away last week. Content Type(s): Press, Press releases
July 17, 2001 Bank of Canada lowers key policy interest rate by 1/4 percentage point to 4 1/4 per cent Media Relations Ottawa, Ontario The Bank of Canada today announced that it is lowering its target for the overnight rate* by one-quarter of one percentage point to 4 1/4 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 4 1/2 per cent. Content Type(s): Press, Press releases
July 13, 2001 Statement From the Governor Media Relations On behalf of the staff and Board of Directors of the Bank of Canada, Governor David Dodge today issued the following statement on the death this week of Tim Noël, Deputy Governor of the Bank since 1994: Content Type(s): Press, Press releases
Evaluating Linear and Non-Linear Time-Varying Forecast-Combination Methods Staff Working Paper 2001-12 Fuchun Li, Greg Tkacz This paper evaluates linear and non-linear forecast-combination methods. Among the non-linear methods, we propose a nonparametric kernel-regression weighting approach that allows maximum flexibility of the weighting parameters. Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods JEL Code(s): C, C1, C14, C5, C53, E, E2, E27
Gaining Credibility for Inflation Targets Staff Working Paper 2001-11 James Yetman In this paper, I consider a simple model in which agents learn about the inflation target of a central bank over time by observing the policy instrument or inflation outcomes. Measuring credibility as the distance between the perceived target and the actual target, an increase in credibility is beneficial to the central bank because it brings the policy consistent with attaining the inflation target closer to that required to attain the output target. Content Type(s): Staff research, Staff working papers Topic(s): Credibility, Inflation targets JEL Code(s): E, E5, E52