Uncategorized

• Predetermined Prices and the Persistent Effects of Money on Output

  Staff Working Paper 2001-13 Michael Devereux, James Yetman

  This paper illustrates a model of predetermined pricing, where firms set a fixed schedule of nominal prices at the time of price readjustment, based on the work of Fischer (1977). This type of price-setting specification cannot produce any excess persistence in a fixed-duration model of staggered prices, but we show that with a probabilistic model of price adjustment, as in Calvo (1983), a predetermined pricing specification can produce excess persistence.

  Content Type(s): Staff research, Staff working papers Topic(s): Monetary policy transmission JEL Code(s): E, E3, E30
• August 1, 2001

  Monetary Policy Report Update – August 2001

  The Bank’s outlook for inflation and overall economic activity in Canada to the end of 2002 has not changed fundamentally from that presented in the May Monetary Policy Report.

  Content Type(s): Publications, Monetary Policy Report
• July 17, 2001

  Bank of Canada lowers key policy interest rate by 1/4 percentage point to 4 1/4 per cent

  Media Relations Ottawa, Ontario

  The Bank of Canada today announced that it is lowering its target for the overnight rate* by one-quarter of one percentage point to 4 1/4 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 4 1/2 per cent.

  Content Type(s): Press, Press releases
• June 26, 2001

  Canada's Monetary Policy Approach: It Works for Canadians

  Remarks David Dodge Edmonton Chamber of Commerce Edmonton, Alberta

  The Bank of Canada's commitment is to contribute to the economic well-being of Canadians. This means conducting monetary policy so that it fosters sustained economic growth - by creating conditions that favour rising output, employment, and incomes, and a stable macroeconomic environment.

  Content Type(s): Press, Speeches and appearances, Remarks
• May 29, 2001

  Bank of Canada lowers key policy rate by 1/4 per cent

  Media Relations Ottawa, Ontario

  The Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of one percentage point to 4 1/2 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is reduced by one-quarter of one percentage point to 4 3/4 per cent.

  Content Type(s): Press, Press releases
• May 1, 2001

  Opening Statement before the House of Commons Standing Committee on Finance

  Opening statement David Dodge House of Commons Standing Committee on Finance

  The Report provides our latest assessment of the outlook for economic growth and inflation in Canada. Before I give you a flavour of that assessment, I would like to say a word about the objective of Canadian monetary policy and how we go about achieving it.

  Content Type(s): Press, Speeches and appearances, Opening statements
• May 1, 2001

  Monetary Policy Report – May 2001

  At the time of the November 2000 Monetary Policy Report, although signs of the anticipated slowing of the U.S. economy were becoming apparent, the momentum of the global economy was considered strong.

  Content Type(s): Publications, Monetary Policy Report
• May 1, 2001

  Technical Background Document 1

  Technical data relating to the 2001 target renewal.
• May 1, 2001

  Technical Background Document 2

  Technical data relating to the 2001 target renewal.
• May 1, 2001

  Renewal of the Inflation-Control Target (May 2001)

  Commentary relating to the 2001 target renewal.

  Content Type(s): Background materials Topic(s): Inflation and prices, Monetary policy