Inflation targets

• June 27, 2018 Let Me Be Clear: From Transparency to Trust and Understanding

  Remarks Stephen S. Poloz Greater Victoria Chamber of Commerce Victoria, British Columbia

  Governor Poloz talks about how the Bank is improving communications with the public and helping financial markets understand its monetary policy approach.

  Content Type(s): Press, Speeches Topic(s): Credibility, Financial markets, Inflation targets, Monetary Policy, Recent economic and financial developments, Uncertainty and monetary policy

• May 16, 2018 The (Mostly) Long and Short of Potential Output

  Remarks Lawrence Schembri Ottawa Economics Association and CFA Society Ottawa Ottawa, Ontario

  Deputy Governor Lawrence Schembri discusses the importance of potential output to monetary policy, as well as policy challenges and opportunities in a world of low potential output growth.

  Content Type(s): Press, Speeches Topic(s): Inflation targets, Interest rates, Labour markets, Monetary Policy, Monetary policy framework, Potential output, Productivity

• Could a Higher Inflation Target Enhance Macroeconomic Stability?

  Staff Working Paper 2018-17 José Dorich, Nicholas Labelle, Vadym Lepetyuk, Rhys R. Mendes

  Recent international experience with the effective lower bound on nominal interest rates has rekindled interest in the benefits of inflation targets above 2 per cent. We evaluate whether an increase in the inflation target to 3 or 4 per cent could improve macroeconomic stability in the Canadian economy.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Economic models, Inflation targets, Monetary policy framework JEL Code(s): E, E3, E32, E37, E4, E43, E5, E52

• 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

• How Do Central Bank Projections and Forward Guidance Influence Private-Sector Forecasts?

  Staff Working Paper 2018-2 Monica Jain, Christopher S. Sutherland

  We construct a 23-country panel data set to consider the effect of central bank projections and forward guidance on private-sector forecast disagreement. We find that central bank projections and forward guidance matter mainly for private-sector forecast disagreement surrounding upcoming policy rate decisions and matter less for private-sector macroeconomic forecasts.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Central bank research, Inflation targets, Monetary Policy, Monetary policy communications, Transmission of monetary policy JEL Code(s): D, D8, D83, E, E3, E37, E5, E52, E58

• Redistributive Effects of a Change in the Inflation Target

  Staff Analytical Note 2017-13 Robert Amano, Thomas J. Carter, Yaz Terajima

  In light of the financial crisis and its aftermath, several economists have argued that inflation-targeting central banks should reconsider the level of their inflation targets. While the appropriate level for the inflation target remains an open question, it’s important to note that any transition to a new target would entail certain costs.

  Content Type(s): Staff Research, Staff Analytical Notes Topic(s): Inflation targets, Monetary policy framework JEL Code(s): E, E5, E52, E58

• Changes in Monetary Regimes and the Identification of Monetary Policy Shocks: Narrative Evidence from Canada

  Staff Working Paper 2017-39 Julien Champagne, Rodrigo Sekkel

  We use narrative evidence along with a novel database of real-time data and forecasts from the Bank of Canada's staff economic projections from 1974 to 2015 to construct a new measure of monetary policy shocks and estimate the effects of monetary policy in Canada.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Business fluctuations and cycles, Central bank research, Econometric and statistical methods, Exchange rate regimes, Inflation and prices, Inflation targets, Interest rates, Monetary Policy, Monetary policy framework JEL Code(s): E, E3, E31, E32, E4, E43, E5, E52, E58

• September 14, 2017 Bank of Canada Workshop “Monetary Policy Framework Issues: Toward the 2021 Inflation-Target Renewal”

  Remarks Lawrence Schembri Ottawa, Ontario

  Deputy Governor Lawrence Schembri opens the Bank’s Monetary Policy Framework Issues: Toward the 2021 Inflation-Target Renewal workshop.

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

• 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

• Downward Nominal Wage Rigidity in Canada: Evidence Against a “Greasing Effect”

  Staff Working Paper 2017-31 Joel Wagner

  The existence of downward nominal wage rigidity (DNWR) has often been used to justify a positive inflation target. It is traditionally assumed that positive inflation could “grease the wheels” of the labour market by putting downward pressure on real wages, easing labour market adjustments during a recession.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Inflation targets, Labour markets JEL Code(s): E, E2, E24, E5, E52