Inflation and prices
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October 6, 2022
What’s happening to inflation and why it matters
Governor Tiff Macklem discusses how inflation has evolved in recent months and explains what the Bank is watching as it takes action to return inflation to target. -
October 6, 2022
Restoring price stability for all Canadians
Governor Tiff Macklem explains how inflation in Canada reflects more and more what’s happening with domestic demand and what the Bank is watching as it works to bring inflation back to the 2% target. -
Behavioral Learning Equilibria in New Keynesian Models
We introduce behavioral learning equilibria (BLE) into DSGE models with boundedly rational agents using simple but optimal first order autoregressive forecasting rules. The Smets-Wouters DSGE model with BLE is estimated and fits well with inflation survey expectations. As a policy application, we show that learning requires a lower degree of interest rate smoothing. -
The Central Bank’s Dilemma: Look Through Supply Shocks or Control Inflation Expectations?
When countries are hit by supply shocks, central banks often face the dilemma of either looking through such shocks or reacting to them to ensure that inflation expectations remain anchored. In this paper, we propose a tractable framework to capture this dilemma and then explore optimal policy under a range of assumptions about how expectations are formed. -
September 20, 2022
Macroeconomics of the 2020s: What we’ve learned, and what’s to come
Deputy Governor Paul Beaudry discusses the macroeconomic lessons we’ve learned during the COVID-19 pandemic, and what lies ahead to bring inflation back to target. -
September 20, 2022
Anatomy of a pandemic: Applying old lessons and learning from new ones
Deputy Governor Paul Beaudry describes how the lessons learned from previous economic crises helped central bankers during the global COVID-19 pandemic. He also talks about how managing inflation expectations can help bring inflation back to target. -
House Price Responses to Monetary Policy Surprises: Evidence from the U.S. Listings Data
Existing literature documents that house prices respond to monetary policy surprises with a significant delay, taking years to reach their peak response. We present new evidence of a much faster response. -
September 8, 2022
Getting inflation back to normal
Speaking a day after the Bank of Canada raised interest rates, Senior Deputy Governor Carolyn Rogers discusses where the economy stands and what the Bank is doing to get inflation back under control. -
September 8, 2022
Economic progress report: Restoring price stability
Senior Deputy Governor Carolyn Rogers provides an economic update and discusses why the Bank is raising rates fast to tackle high inflation.