Posts

• December 14, 2007

  The Costs of Inflation in New Keynesian Models

  Bank of Canada Review - Winter 2007-2008 Steve Ambler

  Ambler describes three new channels through which inflation affects economic welfare in New Keynesian models. These channels were absent from traditional analyses and may have caused researchers to underestimate the costs associated with variable inflation, even at relatively low levels of inflation. The article concludes with a preliminary assessment of the quantitative importance of the new channels and their significance for monetary policy.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Inflation: costs and benefits, Monetary policy framework
• December 13, 2007

  Central Bank Performance under Inflation Targeting

  Bank of Canada Review - Winter 2007-2008 Marc-André Gosselin

  Gosselin examines and reports on the various factors that contribute to successful inflation targeting. Using a panel of 21 inflation-targeting countries over the period 1990Q1-2007Q2, Gosselin finds that the ability of central banks to hit their targets varies considerably. Some of these differences can be explained by exchange rate fluctuations, fiscal deficits, and differences in financial development. Others are explained by differences in the targeting framework itself and the manner in which it is implemented.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Central bank research, Inflation targets, Monetary policy framework
• December 13, 2007

  Results of the 13 December 2007 Term PRA Transaction

  The results of today's term PRA operations

  Content Type(s): Press, Market notices
• December 12, 2007

  Expansion of List of Securities Eligible as Collateral for Use Under Bank of Canada Standing Liquidity Facility

  Under its Standing Liquidity Facility (SLF), the Bank of Canada is prepared to provide liquidity on a daily basis to financial institutions that participate directly in the payments systems operated by the Canadian Payments Association. Loans made by the Bank of Canada must be fully collateralized.

  Content Type(s): Press, Market notices
• December 12, 2007

  Bank of Canada Temporarily Expands List of Securities Eligible for Term PRA Transactions

  Today, the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank are announcing measures designed to address elevated pressures in short-term funding markets.

  Content Type(s): Press, Market notices
• December 11, 2007

  The Zero Bound on Nominal Interest Rates: Implications for Monetary Policy

  Bank of Canada Review - Winter 2007-2008 Claude Lavoie, Stephen Murchison

  One of the most important factors that must be considered if countries are thinking about lowering the target level of inflation much below 2 per cent is the zero interest bound. Targeting inflation rates that are too low, the authors note, may restrict the ability of monetary policy to respond to economic shocks by limiting the amount by which interest rates can be eased.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Inflation: costs and benefits, Interest rates, Monetary policy implementation
• December 10, 2007

  Inflation Targeting, Price-Level Targeting, and Fluctuations in Canada's Terms of Trade

  Bank of Canada Review - Winter 2007-2008 Donald Coletti, René Lalonde

  Coletti and Lalonde compare inflation targeting and price-level targeting in the context of a small open economy subject to sizable terms-of-trade shocks. The authors summarize recent research that compares the ability of price-level targeting and inflation targeting to stabilize the macroeconomy when confronted with shocks similar to those experienced by Canada in recent years. Their preliminary results suggest that price-level targeting may represent a feasible alternative to traditional inflation targeting. Their article also provides insight into the direction of current research in this area at the Bank.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Central bank research, Inflation and prices, Monetary policy framework
• December 10, 2007

  Reflections on Developments in the Canadian Financial System

  Remarks David Dodge Canadian Club of Toronto and the Empire Club of Canada Toronto, Ontario

  It has become a tradition that I deliver a speech late in the year on issues related to the financial system. When I say "financial system," I mean financial institutions and markets, together with the clearing and settlement systems through which financial assets flow.

  Content Type(s): Press, Speeches and appearances, Remarks
• December 10, 2007

  Governor Dodge Says Transparency Essential for Financial Market Efficiency

  Media Relations Toronto, Ontario

  Recent market events have shown how important it is to have appropriate levels of transparency and disclosure of information for financial markets to function well, Bank of Canada Governor David Dodge said today.

  Content Type(s): Press, Press releases
• December 6, 2007

  More Than Money: Architecture and Art at the Bank of Canada

  

  This volume will take you on a tour of the head office complex, highlighting interesting features of architecture, interior design, and decoration, as well as elements of restoration and preservation. It also features pieces from the Bank's art collection. Soft cover, 128 pages (2007).

  Content Type(s): Publications, Books and monographs, Souvenir books