Posts

• September 3, 2008

  Bank of Canada keeps overnight rate target at 3 per cent

  Media Relations Ottawa, Ontario

  The Bank of Canada today announced that it is maintaining its target for the overnight rate at 3 per cent.

  Content Type(s): Press, Press releases

• The Welfare Implications of Fiscal Dominance

  Staff Working Paper 2008-28 Carlos De Resende, Nooman Rebei

  This paper studies the interdependence between fiscal and monetary policy in a DSGE model with sticky prices and non-zero trend inflation. We characterize the fiscal and monetary policies by a rule whereby a given fraction k of the government debt must be backed by the discounted value of current and future primary surpluses.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Fiscal policy, Inflation: costs and benefits, Monetary policy framework JEL Code(s): E, E3, E31, E4, E42, E5, E50, E6, E63