April 16, 2020
Monetary policy transmission
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The Effect of Mortgage Rate Resets on Debt: Evidence from TransUnion (Part I)
This note studies how decreases in mortgage rates affect the behaviour of borrowers in terms of spending on durable goods and repaying debt. -
The Power of Helicopter Money Revisited: A New Keynesian Perspective
We analyze money financing of fiscal transfers (helicopter money) in two simple New Keynesian models: a “textbook” model in which all money is non-interest-bearing (e.g., all money is currency), and a more realistic model with interest-bearing reserves. -
The Effects of Inflation Targeting for Financial Development
The adoption of inflation targeting (IT) by central banks leads to an increase of 10 to 20 percent in measures of financial development, with a lag. We also find evidence that the financial sector benefits of IT adoption were higher for early-adopting central banks. -
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. -
May 1, 2019
Opening Statement before the Standing Senate Committee on Banking, Trade and Commerce
Opening Statement before the Standing Senate Committee on Banking, Trade and Commerce. -
April 30, 2019
Opening Statement before the House of Commons Standing Committee on Finance
Good morning, Mr. Chairman and committee members. Once again, Senior Deputy Governor Wilkins and I are pleased to be with you to talk about the Bank’s Monetary Policy Report (MPR), which we published last week. Six months ago, when we last appeared before this committee, we talked about some very positive developments. The Canadian economy […] -
April 8, 2019
Why Do Central Banks Care About Market Power?
Senior Deputy Governor Carolyn A. Wilkins discusses how the competitive landscape and digitalization affect monetary policy and why central banks care about market power. -
February 21, 2019
Price check: Inflation in Canada
Why prices change, and what it means for the economy. -
The Distributional Effects of Conventional Monetary Policy and Quantitative Easing: Evidence from an Estimated DSGE Model
This paper compares the distributional effects of conventional monetary policy and quantitative easing (QE) within an estimated open-economy DSGE model of the euro area.