E - Macroeconomics and Monetary Economics

• Monetary Policy Governance: Bank of Canada Practices to Support Policy Effectiveness

  Staff Discussion Paper 2024-14 Brigitte Desroches, Sharon Kozicki, Laure Simon

  We examine different monetary policy governance structures and discuss the important roles of non-legislated processes and practices. We also provide an update on monetary policy governance at the Bank of Canada and how it has evolved over time.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Credibility, Monetary policy communications, Monetary policy framework JEL Code(s): E, E0, E02, E5, E58

• Ecosystem Models for a Central Bank Digital Currency: Analysis Framework and Potential Models

  Staff Discussion Paper 2024-13 Youming Liu, Francisco Rivadeneyra, Edona Reshidi, Oleksandr Shcherbakov, André Stenzel

  This note analyzes different economic models of a central bank digital currency (CBDC) ecosystem where the central bank chooses different levels of market involvement and usage of policy levers. The analysis suggests that there are trade-offs between the costs to the central bank and its ability to achieve policy goals like universal access.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Central bank research, Digital currencies and fintech, Financial services JEL Code(s): E, E5, E58, E6, E61, L, L5

• Household Food Inflation in Canada

  Staff Working Paper 2024-33 Olena Kostyshyna, Maude Ouellet

  We study food inflation rates for Canadian households during periods of low and high inflation from 2012Q4 to 2023Q4. Households experienced more varied inflation rates during the recent high inflation. Cumulative food inflation has been 2.2 percentage points higher for lower-income households than for highest-income households since the inflation surge.

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices JEL Code(s): E, E2, E21, E3, E30, E31, L, L8, L81

• Let’s Get Physical: Impacts of Climate Change Physical Risks on Provincial Employment

  Staff Working Paper 2024-32 Thibaut Duprey, Soojin Jo, Geneviève Vallée

  We analyze 40 years’ worth of natural disasters using a local projection framework to assess their impact on provincial labour markets in Canada. We find that disasters decrease hours worked within a week and lower wage growth in the medium run. Our study highlights that disasters affect vulnerable workers through the income channel.

  Content Type(s): Staff research, Staff working papers Topic(s): Climate change, Labour markets, Regional economic developments JEL Code(s): C, C3, C33, E, E2, E24, J, J3, Q, Q5, Q54