Fiscal policy

• Fiscal Policy in the Age of COVID-19: Does It “Get in All of the Cracks”?

  Staff Working Paper 2022-45 Pierre-Olivier Gourinchas, Şebnem Kalemli-Özcan, Veronika Penciakova, Nicholas Sander

  The COVID-19 pandemic has caused an atypical recession in which some sectors of the economy boomed and others collapsed. This required a unique fiscal policy reaction to both support firms and stimulate activity in sectors with slack. Was fiscal policy able to get where it was needed? Mostly, yes.

  Content Type(s): Staff research, Staff working papers Topic(s): Coronavirus disease (COVID-19), Firm dynamics, Fiscal policy, International topics JEL Code(s): D, D5, D57, E, E6, E62, F, F4, F41

• Windfall Income Shocks with Finite Planning Horizons

  Staff Working Paper 2022-40 Michael Boutros

  How do households respond when they receive unanticipated income, such as an inheritance or government stimulus cheque? This paper studies these windfall income shocks through a model of household behaviour that generates a realistic consumption response for households along the entire distribution of wealth.

  Content Type(s): Staff research, Staff working papers Topic(s): Domestic demand and components, Economic models, Fiscal policy JEL Code(s): D, D9, D91, E, E2, E21, G, G5, G51
• May 5, 2022

  Supporting Indigenous prosperity

  Speech summary Lawrence L. Schembri National Aboriginal Capital Corporations Association Gatineau, Quebec

  In his final speech before retiring from the Bank of Canada, Deputy Governor Lawrence Schembri talks about the Bank’s contribution to advancing economic inclusion and opportunity for Indigenous peoples.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Fiscal policy, Monetary policy
• May 5, 2022

  Economic reconciliation: Supporting a return to Indigenous prosperity

  Remarks Lawrence L. Schembri National Aboriginal Capital Corporations Association Gatineau, Quebec

  Bank of Canada Deputy Governor Lawrence Schembri discusses economic reconciliation with Indigenous peoples.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Fiscal policy, Monetary policy

• The Central Bank Strikes Back! Credibility of Monetary Policy under Fiscal Influence

  Staff Working Paper 2022-11 Antoine Camous, Dmitry Matveev

  Central banks in many advanced economies enjoy a high degree of independence, which protects monetary policy decisions from political influence. But how should independent central banks react if pressured by fiscal policy-makers? We examine whether a central bank should design a monetary policy framework that prescribes acting conditionally on how fiscal policy behaves.

  Content Type(s): Staff research, Staff working papers Topic(s): Credibility, Fiscal policy, Monetary policy JEL Code(s): E, E0, E02, E5, E52, E58, E6, E61, E62