Fiscal Policy

• February 15, 2018 Anchoring Expectations: Canada’s Approach to Price Stability

  Remarks Lawrence Schembri Manitoba Association for Business Economists Winnipeg, Manitoba

  Deputy Governor Lawrence Schembri examines the success of the Bank’s monetary policy framework and explains the review being undertaken before its renewal in 2021.

  Content Type(s): Press, Speeches Topic(s): Central bank research, Credibility, Fiscal Policy, Inflation and prices, Inflation targets, Monetary policy framework

• Government Spending Multipliers Under the Zero Lower Bound: Evidence from Japan

  Staff Working Paper 2017-40 Wataru Miyamoto, Thuy Lan Nguyen, Dmitriy Sergeyev

  Using a rich data set on government spending forecasts in Japan, we provide new evidence on the effects of unexpected changes in government spending when the nominal interest rate is near the zero lower bound (ZLB).

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Economic models, Fiscal Policy JEL Code(s): E, E3, E32, E5, E6, E62

• September 14, 2017 Monetary Policy Framework Issues: Toward the 2021 Inflation-Target Renewal

  Remarks Carolyn A. Wilkins Ottawa, Ontario

  Senior Deputy Governor Carolyn A. Wilkins reviews key themes discussed by participants at the workshop “Monetary Policy Framework Issues: Toward the 2021 Inflation-Target Renewal”.

  Content Type(s): Press, Speeches Topic(s): Central bank research, Financial system regulation and policies, Fiscal Policy, Inflation and prices, Inflation targets, Monetary policy framework

• January 18, 2017 Monetary Policy Report Press Conference Opening Statement

  Opening Statement Stephen S. Poloz, Carolyn A. Wilkins Ottawa, Ontario

  Governor Stephen S. Poloz discusses key issues involved in the Governing Council’s deliberations about the policy rate decision and the MPR.

  Content Type(s): Press, Speeches Topic(s): Fiscal Policy, Inflation and prices, Monetary Policy, Potential output, Recent economic and financial developments, Uncertainty and monetary policy

• The Doug Purvis Memorial Lecture—Monetary/Fiscal Policy Mix and Financial Stability: The Medium Term Is Still the Message

  Staff Discussion Paper 2016-13 Stephen S. Poloz

  In the Doug Purvis Memorial Lecture, Governor Stephen S. Poloz shows how changing the mix of monetary and fiscal policies can yield the same outcomes for growth and inflation, but lead to different results for public sector and private sector debt levels, which can impact financial stability.

  Content Type(s): Staff Research, Staff Discussion Papers Topic(s): Economic models, Financial stability, Fiscal Policy, Monetary policy framework JEL Code(s): E, E3, E37, E5, E6, E63

• June 4, 2016 Monetary/Fiscal Policy Mix and Financial Stability: The Medium Term Is Still the Message

  Remarks Stephen S. Poloz Canadian Economics Association Ottawa, Ontario

  Governor Stephen S. Poloz discusses how the mix of monetary and fiscal policies in an economy has important implications for debt levels and financial stability over the medium term.

  Content Type(s): Press, Speeches Topic(s): Central bank research, Economic models, Fiscal Policy, Inflation targets, Monetary Policy, Monetary policy framework

• Monetary Commitment and the Level of Public Debt

  Staff Working Paper 2016-3 Stefano Gnocchi, Luisa Lambertini

  We analyze the interaction between committed monetary policy and discretionary fiscal policy in a model with public debt, endogenous government expenditures, distortive taxation and nominal rigidities.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Credibility, Fiscal Policy, Inflation targets, Monetary policy framework JEL Code(s): E, E2, E24, E3, E32, E5, E52

• Risk Sharing in the Presence of a Public Good

  Staff Working Paper 2015-27 Josef Schroth

  This paper studies an economy where agents can spend resources on consuming a private good and on funding a public good. There is asymmetric information regarding agents’ relative preference for private versus public good consumption.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial stability, Financial system regulation and policies, Fiscal Policy JEL Code(s): D, D8, D82, D86, E, E6, E62, H, H2, H21, H23, H7, H77

• Global Inflation Dynamics in the Post-Crisis Period: What Explains the Twin Puzzle?

  Staff Working Paper 2014-36 Christian Friedrich

  Inflation dynamics in advanced countries have produced two consecutive puzzles during the years after the global financial crisis. The first puzzle emerged when inflation rates over the period 2009-11 were consistently higher than expected, although economic slack in advanced countries reached its highest level in recent history.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Fiscal Policy, Inflation and prices, International topics JEL Code(s): E, E3, E31, E5, F, F4, F41

• Housework and Fiscal Expansions

  Staff Working Paper 2014-34 Stefano Gnocchi, Daniela Hauser, Evi Pappa

  We build an otherwise-standard business cycle model with housework, calibrated consistently with data on time use, in order to discipline consumption-hours complementarity and relate its strength to the size of fiscal multipliers.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Business fluctuations and cycles, Fiscal Policy JEL Code(s): E, E2, E24, E3, E32, E5, E52, E6, E62