December 5, 2019
Monetary policy framework
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Technological Progress and Monetary Policy: Managing the Fourth Industrial Revolution
This paper looks at the implications for monetary policy of the widespread adoption of artificial intelligence and machine learning, which is sometimes called the “fourth industrial revolution.” -
September 5, 2019
Economic Progress Report: Inflation in Canada—Well Behaved and Well Controlled
Deputy Governor Lawrence Schembri discusses the Bank’s latest interest rate announcement and the behaviour of inflation in Canada. -
September 5, 2019
Canadian economy resilient even as global outlook worsens
Speaking a day after we decided to hold interest rates steady, Deputy Governor Lawrence Schembri discussed the key points Governing Council considered in their decision. -
A Comprehensive Evaluation of Measures of Core Inflation in Canada: An Update
We provide an updated evaluation of the value of various measures of core inflation that could be used in the conduct of monetary policy. We find that the Bank of Canada’s current preferred measures of core inflation—CPI-trim, CPI-median and CPI-common—continue to outperform alternative core measures across a range of criteria. -
June 17, 2019
Flexible Exchange Rates, Commodity Prices and Price Stability
Deputy Governor Lawrence Schembri speaks before the Economics Society of Northern Alberta (ESNA). -
June 17, 2019
The merits of a floating exchange rate
Deputy Governor Lawrence Schembri explains how Canada’s monetary policy framework—inflation targeting underpinned by a flexible exchange rate—has proved to be the most durable in the post-war period. -
Bank Market Power and Central Bank Digital Currency: Theory and Quantitative Assessment
We show that issuing a deposit-like central bank digital currency (CBDC) with a proper interest rate would encourage banks to pay higher interest to keep their customers. Banks would then attract more deposits and offer more loans. Hence, a CBDC would not necessarily crowd out private banking. -
Labor Mobility in a Monetary Union
The optimal currency literature has stressed the importance of labor mobility as a precondition for the success of monetary unions. But only a few studies formally link labor mobility to macroeconomic adjustment and policy. In this paper, we study macroeconomic dynamics and optimal monetary policy in an economy with cyclical labor flows across two distinct regions that share trade links and a common monetary framework. -
February 21, 2019
Price check: Inflation in Canada
Why prices change, and what it means for the economy.