Posts

• February 28, 2019

  Research Update - February 2019

  This monthly newsletter features the latest research publications by Bank of Canada economists including external publications and working papers published on the Bank of Canada’s website.

  Content Type(s): Staff research, Research newsletters

• Limiting Sender’s Information in Bayesian Persuasion

  Staff Working Paper 2019-10 Shota Ichihashi

  This paper studies how the outcome of Bayesian persuasion depends on a sender’s information. I study a game in which, prior to the sender’s information disclosure, the designer can restrict the most informative signal that the sender can generate.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models JEL Code(s): D, D8, D82, D83

• 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
• February 26, 2019

  Bank of Canada publishes the Canadian Alternative Reference Rate Working Group’s Consultation Paper on Proposed Enhancements to the Canadian Dollar Overnight Repo Rate Average (CORRA)

  The Bank of Canada, on behalf of the Canadian Alternative Reference Rate Working Group (CARR), has published a consultation on proposed enhancements to the Canadian Overnight Repo Rate Average (CORRA) risk-free interest-rate benchmark.

  Content Type(s): Press, Market notices Source(s): Canadian Alternative Reference Rate Working Group
• February 25, 2019

  CARR Meeting (February 25, 2019)

  Content Type(s): Meetings Source(s): Canadian Alternative Reference Rate Working Group

• Liquidity Management of Canadian Corporate Bond Mutual Funds: A Machine Learning Approach

  Staff Analytical Note 2019-7 Rohan Arora, Chen Fan, Guillaume Ouellet Leblanc

  When redeeming shares for investors, bond fund managers must choose a mix of cash and bond sales to honour their commitments. This note uses machine learning algorithms to uncover new patterns in decisions fund managers make to meet redemptions.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Financial markets, Financial stability JEL Code(s): G, G1, G2, G20, G23

• The Size and Characteristics of Informal (“Gig”) Work in Canada

  Staff Analytical Note 2019-6 Olena Kostyshyna, Corinne Luu

  Underlying wage growth has fallen short of what would be consistent with an economy operating with little or no slack. While many factors could explain this weakness, the availability of additional labour resources from informal (“gig”) work—not fully captured in standard measures of employment and hours worked—may play a role.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Labour markets, Recent economic and financial developments JEL Code(s): E, E2, E24, E26, J, J2, J20, J3, J30, J4
• February 21, 2019

  Price check: Inflation in Canada

  Sharon Kozicki, Jill Vardy, Laurence Savoie-Chabot

  Why prices change, and what it means for the economy.

  Content Type(s): Publications, The Economy, Plain and Simple Topic(s): Business fluctuations and cycles, Credibility, Expectations, Inflation and prices, Inflation targets, Inflation: costs and benefits, Monetary policy framework, Monetary policy transmission, Price stability
• February 21, 2019

  History demonstrates the power and limitations of monetary policy, Governor Poloz says

  Media Relations Montréal, Quebec

  Monetary policy has proven to be a powerful instrument to control inflation and promote Canada’s economic welfare, subject to a number of limitations, Bank of Canada Governor Stephen S. Poloz said today.

  Content Type(s): Press, Press releases
• February 21, 2019

  Toward 2021: The Power—and Limitations—of Policy

  Remarks Stephen S. Poloz The Chamber of Commerce of Metropolitan Montreal Montréal, Quebec

  Governor Poloz explains that monetary policy is a powerful tool to promote economic welfare, but it also has some important limits.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Central bank research, Financial stability, Inflation targets, Monetary policy and uncertainty, Monetary policy framework, Recent economic and financial developments