August 25, 2018
Uncategorized
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The Welfare Cost of Inflation Revisited: The Role of Financial Innovation and Household Heterogeneity
We document that, across households, the money consumption ratio increases with age and decreases with consumption, and that there has been a large increase in the money consumption ratio during the recent era of very low interest rates. We construct an overlapping generations (OLG) model of money holdings for transaction purposes subject to age (older households use more money), cohort (younger generations are exposed to better transaction technology), and time effects (nominal interest rates affect money holdings). -
Sluggish Forecasts
Given the influence that agents’ expectations have on key macroeconomic variables, it is surprising that very few papers have tried to extrapolate agents’ “true” expectations directly from the data. This paper presents one such approach, starting with the hypothesis that there is sluggishness in inflation and real GDP growth forecasts. -
August 21, 2018
Summary of Comments – Government of Canada Debt Distribution Framework Review Consultations
A Summary of Comments received from the March 2018 Government of Canada Debt Distribution Framework Review Consultations is being published on the Bank of Canada’s website -
Nowcasting Canadian Economic Activity in an Uncertain Environment
This paper studies short-term forecasting of Canadian real GDP and its expenditure components using combinations of nowcasts from different models. Starting with a medium-sized data set, we use a suite of common nowcasting tools for quarterly real GDP and its expenditure components. -
August 15, 2018
RCMP’s E Division wins Bank of Canada counterfeit prevention award
The Bank of Canada congratulates the Integrated Counterfeit Enforcement Team from British Columbia’s Federal Serious and Organized Crime branch, E Division—Financial Integrity. They are the winners of the 2018 Law Enforcement Award of Excellence for Counterfeit Deterrence. -
July 31, 2018
Bank of Canada publishes its 2019 schedule for policy interest rate announcements, the release of the Monetary Policy Report, the Business Outlook Survey and the Senior Loan Officer Survey
The Bank of Canada today published its 2019 schedule for policy interest rate announcements and the release of the quarterly Monetary Policy Report, and reconfirmed the scheduled interest rate announcement dates for the remainder of this year. -
July 31, 2018
Research Update - July 2018
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. -
Time-Consistent Management of a Liquidity Trap with Government Debt
This paper studies optimal discretionary monetary and fiscal policy when the lower bound on nominal interest rates is occasionally binding in a model with nominal rigidities and long-term government debt. At the lower bound it is optimal for the government to temporarily reduce debt. -
The Extensive Margin of Trade and Monetary Policy
This paper studies the effects of monetary policy shocks on firms’ participation in exporting. We develop a two-country dynamic stochastic general equilibrium model in which heterogeneous firms make forward-looking decisions on whether to participate in the export market and prices are staggered across firms and time.