Inflation targets

• The 2021–22 Surge in Inflation

  Staff Discussion Paper 2023-3 Oleksiy Kryvtsov, James (Jim) C. MacGee, Luis Uzeda

  The rise in inflation in 2021–22 sparked a growing literature and debate over the causes of the surge as well as the near- and medium-term path for inflation. This review offers three key messages.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Inflation and prices, Inflation targets, Monetary policy JEL Code(s): E, E3, E31, E5, E52, E58

• Gazing at r-star: A Hysteresis Perspective

  Staff Working Paper 2023-5 Paul Beaudry, Katya Kartashova, Césaire Meh

  Many explanations for the decline in real interest rates over the last 30 years point to the role that population aging or rising income inequality plays in increasing the long-run aggregate demand for assets. Notwithstanding the importance of such factors, the starting point of this paper is to show that the major change driving household asset demand over this period is instead an increased desire—for a given age and income level—to hold assets.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Fiscal policy, Inflation and prices, Inflation targets, Interest rates, Monetary policy, Monetary policy framework JEL Code(s): E, E2, E21, E3, E31, E4, E43, E5, E52, E58, E6, E62, G, G5, G51, H, H6
• September 20, 2022

  Macroeconomics of the 2020s: What we’ve learned, and what’s to come

  Remarks Paul Beaudry University of Waterloo Faculty of Arts Distinguished Lecture in Economics Waterloo, Ontario

  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.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Coronavirus disease (COVID-19), Expectations, Inflation and prices, Inflation targets, International topics, Labour markets, Monetary policy implementation, Recent economic and financial developments
• September 20, 2022

  Anatomy of a pandemic: Applying old lessons and learning from new ones

  Speech summary Paul Beaudry University of Waterloo Faculty of Arts Distinguished Lecture in Economics Waterloo, Ontario

  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.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Coronavirus disease (COVID-19), Expectations, Inflation and prices, Inflation targets, International topics, Labour markets, Monetary policy implementation, Recent economic and financial developments

• A Horse Race of Monetary Policy Regimes: An Experimental Investigation

  Staff Working Paper 2022-33 Olena Kostyshyna, Luba Petersen, Jing Yang

  How should central banks design monetary policy in stable times and during recessions? We run a horse race between five monetary policy frameworks in an experimental laboratory to assess how well the different approaches can manage the public’s expectations and stabilize the economy.

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation targets, Monetary policy, Monetary policy communications, Monetary policy framework JEL Code(s): C, C9, D, D8, D84, E, E5, E52, E58
• June 6, 2022

  Understanding quantitative easing

  QE is a tool that encourages spending and investment—helping us to achieve our inflation target by stabilizing the economy.

  Content Type(s): Explainers Topic(s): Inflation targets, Monetary policy
• June 2, 2022

  Economic progress report: Navigating a high inflation environment

  Remarks (delivered virtually) Paul Beaudry Gatineau Chamber of Commerce Gatineau, Quebec

  Bank of Canada Deputy Governor Paul Beaudry talks about the Bank’s latest interest rate announcement and the importance of keeping inflation expectations well anchored to prevent high inflation from becoming entrenched.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Credibility, Expectations, Inflation and prices, Inflation targets, Interest rates, Monetary policy, Monetary policy and uncertainty, Monetary policy implementation, Price stability, Recent economic and financial developments
• June 2, 2022

  Navigating high inflation

  Speech summary Paul Beaudry Gatineau Chamber of Commerce Gatineau, Quebec

  On June 1, the Bank of Canada decided to increase its policy interest rate by half a percentage point. Speaking the next day, Deputy Governor Paul Beaudry explains why inflation has been higher than expected and what we are doing to get it back to our 2% target.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Credibility, Expectations, Inflation and prices, Inflation targets, Interest rates, Monetary policy, Monetary policy and uncertainty, Monetary policy implementation, Price stability, Recent economic and financial developments
• May 3, 2022

  The Bank of Canada: A matter of trust

  Remarks Carolyn Rogers Women in Capital Markets Toronto, Ontario

  Senior Deputy Governor Carolyn Rogers discusses how the Bank of Canada’s independence and accountability help build public trust.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Coronavirus disease (COVID-19), Credibility, Inflation targets, Monetary policy and uncertainty, Monetary policy communications, Monetary policy framework, Recent economic and financial developments
• May 3, 2022

  Earning the trust of Canadians

  Speech summary Carolyn Rogers Women in Capital Markets Toronto, Ontario

  In her first speech with the Bank of Canada, Senior Deputy Governor Carolyn Rogers talks about how independence and accountability help the Bank build and maintain trust.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Coronavirus disease (COVID-19), Credibility, Inflation targets, Monetary policy and uncertainty, Monetary policy communications, Monetary policy framework, Recent economic and financial developments