Monetary Policy

• Exploring Wage Phillips Curves in Advanced Economies

  Staff Discussion Paper 2019-8 Rose Cunningham, Vikram Rai, Kristina Hess

  We investigate the extent to which excess supply (demand) in labour markets contributes to a lower (higher) growth rate of average nominal wages for workers. Using panel methods on data from 10 advanced economies for 1992–2018, we produce reduced-form estimates of a wage Phillips curve specification that is consistent with a New Keynesian framework.

  Content Type(s): Staff Research, Staff Discussion Papers Topic(s): Inflation and prices, Labour markets, Monetary Policy JEL Code(s): C, C3, C33, E, E3, E31, E32

• Online Job Seekers in Canada: What Can We Learn from Bing Job Queries?

  Staff Analytical Note 2019-18 André Binette, Karyne B. Charbonneau, Nicholas Curtis, Gabriela Galassi, Scott Counts, Justin Cranshaw

  Labour markets in Canada and around the world are evolving rapidly with the digital economy. Traditional data are adapting gradually but are not yet able to provide timely information on this evolution.

  Content Type(s): Staff Research, Staff Analytical Notes Topic(s): Central bank research, Labour markets, Monetary Policy JEL Code(s): C, C8, C80, E, E2, E24, J, J2, J21

• Central Bank Digital Currency and Banking

  Staff Working Paper 2019-20 Jonathan Chiu, Mohammad Davoodalhosseini, Janet Hua Jiang, Yu Zhu

  Many central banks are considering whether to issue a new form of electronic money that would be accessible to the public. This new form is usually called a central bank digital currency (CBDC). Issuing a CBDC would have implications for the financial system and, more broadly, the wider economy.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Digital Currencies and Fintech, Market structure and pricing, Monetary Policy, Monetary policy framework JEL Code(s): E, E5, E50, E58
• May 30, 2019

  Economic Progress Report: Investing in Growth

  Remarks Carolyn A. Wilkins Calgary Chamber of Commerce Calgary, Alberta

  Senior Deputy Governor Carolyn A. Wilkins talks about the importance of business investment to the Canadian economy and reviews the latest interest rate decision.

  Content Type(s): Press, Speeches Topic(s): Interest rates, Monetary Policy, Potential output, Productivity, Recent economic and financial developments
• May 30, 2019

  Economic progress depends on business investment

  Carolyn A. Wilkins Calgary Chamber of Commerce Calgary, Alberta

  Senior Deputy Governor Carolyn A. Wilkins talks about the importance of business investment to the Canadian economy and reviews the latest interest rate decision.

  Content Type(s): Press, Speeches Topic(s): Interest rates, Monetary Policy, Potential output, Productivity, Recent economic and financial developments
• May 1, 2019

  Opening Statement before the Standing Senate Committee on Banking, Trade and Commerce

  Opening Statement Stephen S. Poloz Standing Senate Committee on Banking, Trade and Commerce Ottawa, Ontario

  Opening Statement before the Standing Senate Committee on Banking, Trade and Commerce.

  Content Type(s): Press, Speeches Topic(s): Inflation and prices, Monetary Policy, Recent economic and financial developments, Transmission of monetary policy
• April 30, 2019

  Opening Statement before the House of Commons Standing Committee on Finance

  Opening Statement Stephen S. Poloz House of Commons Standing Committee on Finance Ottawa, Ontario

  Content Type(s): Press, Speeches Topic(s): Inflation and prices, Monetary Policy, Recent economic and financial developments, Transmission of monetary policy

• The Neutral Rate in Canada: 2019 Update

  Staff Analytical Note 2019-11 Thomas J. Carter, Xin Scott Chen, José Dorich

  This note provides an update on Bank of Canada staff’s assessment of the Canadian neutral rate. The neutral rate is the policy rate needed to keep output at its potential level and inflation at target once the effects of any cyclical shocks have dissipated. This medium- to long-run concept serves as a benchmark for gauging the degree of monetary stimulus provided by a given policy setting.

  Content Type(s): Staff Research, Staff Analytical Notes Topic(s): Economic models, Interest rates, Monetary Policy JEL Code(s): E, E4, E40, E43, E5, E50, E52, E58, F, F4, F41

• Inflation Targeting and Liquidity Traps Under Endogenous Credibility

  Staff Working Paper 2019-9 Cars Hommes, Joep Lustenhouwer

  Policy implications are derived for an inflation-targeting central bank, whose credibility is endogenous and depends on its past ability to achieve its targets. This is done in a New Keynesian framework with heterogeneous and boundedly rational expectations.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Business fluctuations and cycles, Credibility, Monetary Policy JEL Code(s): C, C6, C62, E, E3, E32, E5, E52

• Canada’s Monetary Policy Report: If Text Could Speak, What Would It Say?

  Staff Analytical Note 2019-5 André Binette, Dmitri Tchebotarev

  This note analyzes the evolution of the narrative in the Bank of Canada’s Monetary Policy Report (MPR). It presents descriptive statistics on the core text, including length, most frequently used words and readability level—the three Ls. Although each Governor of the Bank of Canada focuses on the macroeconomic events of the day and the mandate of inflation targeting, we observe that the language used in the MPR varies somewhat from one Governor’s tenure to the next.

  Content Type(s): Staff Research, Staff Analytical Notes Topic(s): Central bank research, Monetary Policy JEL Code(s): E, E0, E02, E5, E52