January 30, 2020
Monetary policy implementation
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January 30, 2020
Monetary Policy and Financial Vulnerabilities
Deputy Governor Paul Beaudry discusses how financial vulnerabilities present a challenge for monetary policy. -
Central Bank Communication That Works: Lessons from Lab Experiments
We use controlled laboratory experiments to test the causal effects of central bank communication on economic expectations and to distinguish the underlying mechanisms of those effects. In an experiment where subjects learn to forecast economic variables, we find that central bank communication has a stabilizing effect on individual and aggregate outcomes and that the size of the effect varies with the type of communication. -
September 8, 2018
Investing in Monetary Policy Independence in a Small Open Economy
Governor Poloz discusses policies that can help central banks keep the ability to pursue independent monetary policy in a financially integrated global economy. -
Following the Money: Evidence for the Portfolio Balance Channel of Quantitative Easing
Recent research suggests that quantitative easing (QE) may affect a broad range of asset prices through a portfolio balance channel. Using novel security-level holding data of individual US mutual funds, we establish evidence that portfolio rebalancing occurred both within and across funds. -
Assessing the Impact of Demand Shocks on the US Term Premium
During and after the Great Recession of 2008–09, conventional monetary policy in the United States and many other advanced economies was constrained by the effective lower bound (ELB) on nominal interest rates. Several central banks implemented large-scale asset purchase (LSAP) programs, more commonly known as quantitative easing or QE, to provide additional monetary stimulus. -
Noisy Monetary Policy
We introduce limited information in monetary policy. Agents receive signals from the central bank revealing new information (“news") about the future evolution of the policy rate before changes in the rate actually take place. However, the signal is disturbed by noise. -
November 16, 2017
An Initial Assessment of Changes to the Bank of Canada’s Framework for Market Operations
The Bank of Canada made changes to several of the tools that make up its framework for operations and liquidity provision. These changes came about after a comprehensive re-view of the framework and are designed to help the Bank better achieve its objectives of reinforcing the target for the overnight rate and supporting the well-functioning of Cana-dian financial markets under normal market conditions. -
November 15, 2017
Embracing Uncertainty in the Conduct of Monetary Policy
Senior Deputy Governor Carolyn A. Wilkins explains how uncertainty is factored into monetary policy decisions. -
November 7, 2017
Understanding Inflation: Getting Back to Basics
Governor Stephen S. Poloz discusses how recent weak inflation in Canada and other economies can be explained by fundamental factors.