Identifying Policy-makers' Objectives: An Application to the Bank of Canada
In this paper, we develop a new way to test hypotheses about policy-makers' targets, and we implement that test for Canadian monetary policy.
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June 1, 2000
Price Stability and the Long-Run Target for Monetary Policy
Proceedings of a seminar held by the Bank of Canada, June 2000 (proceedings volume, available in electronic format only) -
May 17, 2000
Bank of Canada Raises Target Overnight Rate by ½ Percentage Point to 5¾ Per Cent
The Bank of Canada raised its target for the overnight rate by one-half of one percentage point to 5¾ per cent. The operating band for the overnight rate was correspondingly increased, and the Bank Rate is now 6 per cent. -
May 16, 2000
Opening Statement before the House of Commons Standing Committee on Finance
Last week, we released our eleventh Monetary Policy Report. Since our November Report, the Canadian economy has outperformed expectations. Bolstered by vigorous external and domestic demand, Canada's economic expansion strengthened in the second half of 1999 and into early 2000. -
May 11, 2000
Monetary Policy Report – May 2000
The global economy has shown greater strength than was anticipated at the time of the November Report. -
May 11, 2000
Release of the Monetary Policy Report
This morning we released our latest Monetary Policy Report. The outlook that we see for Canadian economic growth and inflation is very positive. The economy has outperformed expectations since our November Report and the underlying trend of inflation has been lower than expected. With the global economy gaining momentum and greater demand at home, we […] -
May 11, 2000
Bank of Canada releases its semi-annual Monetary Policy Report
The Bank of Canada today released its eleventh Monetary Policy Report in which it discusses economic and financial trends in the context of Canada's inflation-control strategy. The Monetary Policy Report is published every May and November.
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Probing Potential Output: Monetary Policy, Credibility, and Optimal Learning under Uncertainty
The effective conduct of monetary policy is complicated by uncertainty about the level of potential output, and thus about the size of the monetary policy response that would be sufficient to achieve the targeted inflation rate. One possible response to such uncertainty is for the monetary authority to "probe," interpreted here as actively using its policy response to learn about the level of potential output. -
Modelling Risk Premiums in Equity and Foreign Exchange Markets
The observed predictability of excess returns in equity and foreign exchange markets has largely been attributed to the presence of time-varying risk premiums in these markets. For example, excess equity returns were found to be explained by various financial and economic variables. -
Testing the Pricing-to-Market Hypothesis: Case of the Transportation Equipment Industry
Pricing-to-market (PTM) theory suggests that monopolistic firms which export adjust their destination-specific markups in reaction to exchange rate shocks. These adjustments limit changes in the price of their exports.