October 6, 2022
Inflation: costs and benefits
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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. -
May 12, 2022
The perfect storm
Deputy Governor Toni Gravelle discusses the commodity price shock and its implications for the Canadian economy and monetary policy. -
May 12, 2022
How commodity prices affect our economy
Deputy Governor Toni Gravelle talks about the spike in commodity prices over the past two years, the impact on inflation and how the Bank of Canada is responding. -
August 13, 2020
Understanding inflation
Inflation is a persistent rise in the average level of prices over time. -
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February 21, 2019
Price check: Inflation in Canada
Why prices change, and what it means for the economy. -
The Welfare Cost of Inflation Revisited: The Role of Financial Innovation and Household Heterogeneity
We document that, across households, the money consumption ratio increases with age and decreases with consumption, and that there has been a large increase in the money consumption ratio during the recent era of very low interest rates. We construct an overlapping generations (OLG) model of money holdings for transaction purposes subject to age (older households use more money), cohort (younger generations are exposed to better transaction technology), and time effects (nominal interest rates affect money holdings). -
November 1, 2016
25 Years of Inflation Targets: Certainty for Uncertain Times
Governor Stephen S. Poloz discusses the renewal of Canada’s inflation-targeting agreement and how it continues to help the economy. -
The Optimal Level of the Inflation Target: A Selective Review of the Literature and Outstanding Issues
Bank of Canada research done prior to the most recent renewal of the inflation-control agreement in 2011 concluded that the benefits associated with a target below 2 per cent were insufficient to justify the increased risk of being constrained by the zero lower bound (ZLB) on nominal interest rates.