Publications

• October 19, 2006

  Monetary Policy Report – October 2006

  

  The Canadian economy continues to operate just above its full production capacity, and the near-term outlook for core inflation has moved slightly higher.

  Content Type(s): Publications, Monetary Policy Report
• October 8, 2006

  Modelling Financial Channels for Monetary Policy Analysis

  Bank of Canada Review - Autumn 2006 Ian Christensen, Ben Fung, Césaire Meh

  The Bank of Canada considers a wide range of information and analysis before making a monetary policy decision and uses carefully articulated models to produce economic projections and to examine alternative scenarios. This article describes an ongoing research agenda at the Bank to develop models in which financial variables play an active role in the transmission of monetary policy actions to economic activity. Such models can help to analyze information from the financial side of the economy and to provide an overall view of the implications of financial developments for the current economic outlook. The authors also explain how this research can help address other issues relevant to the objectives of monetary policy, including how asset-price movements should be taken into account in the monetary policy framework.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Credit and credit aggregates, Economic models, Monetary policy transmission
• October 6, 2006

  Business Outlook Survey - Autumn 2006

  Overall, businesses continue to be positive about the economic outlook.

  Content Type(s): Publications, Business Outlook Survey
• October 3, 2006

  A New Effective Exchange Rate Index for the Canadian Dollar

  Bank of Canada Review - Autumn 2006 Janone Ong

  An effective exchange rate is a measure of the value of a country's currency vis-à-vis the currencies of its most important trading partners. The Bank of Canada has created a new Canadian-dollar effective exchange rate index (CERI) to replace the C-6 index that it currently uses. The CERI uses multilateral trade weights published by the International Monetary Fund and includes the six currencies of countries or economic zones with the largest share of Canada's international trade. As such, it better reflects the recent changes in Canada's trade profile, including the rise in the importance of China and Mexico and the relative decline in importance of Europe and Japan in Canada's international trade. The author describes the methodology and construction of the new index and reviews the advantages it offers over the C-6, particularly the use of multilateral trade weights, the inclusion of trade in services, and the use of more recent trade data.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Exchange rates, Financial markets, Monetary and financial indicators
• July 13, 2006

  Monetary Policy Report Update – July 2006

  Overall, the outlook for economic growth and inflation in Canada is largely unchanged from that set out in the April Monetary Policy Report.

  Content Type(s): Publications, Monetary Policy Report
• June 30, 2006

  Business Outlook Survey - Summer 2006

  The results of this Business Outlook Survey are broadly in line with those of the previous one.

  Content Type(s): Publications, Business Outlook Survey
• June 21, 2006

  Credibility with Flexibility: The Evolution of Inflation-Targeting Regimes, 1990–2006

  Bank of Canada Review - Summer 2006 Graydon Paulin

  Beginning with a review of the adoption of inflation targeting in a broad group of countries, Paulin focuses on changes in the design of inflation-targeting frameworks in light of fifteen years of accumulated experience. Included in the discussion are the use of numerical targets and ranges, the policy horizon, supporting institutional policy structures, and communication, including the publication of forecasts. A recurring theme is how much flexibility an inflation-targeting regime allows. The article concludes that the changes made to the frameworks have been relatively modest since their adoption, but in concert with the improved credibility that has resulted from central banks meeting their inflation-control targets, they have allowed an increasingly nuanced response to economic shocks.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Credibility, Inflation targets, Monetary policy framework
• June 21, 2006

  Bank of Canada Review - Summer 2006

  

  Cover page

  Irish Gun Money

  The coins pictured on the cover are part of the National Currency Collection of the Bank of Canada.
  Photography by Gord Carter

  Content Type(s): Publications, Bank of Canada Review
• June 21, 2006

  Financial System Review - June 2006

  

  The financial system makes an important contribution to the welfare of all Canadians. The ability of households and firms to confidently hold and transfer financial assets is one of the fundamental building blocks of the Canadian economy.

  Content Type(s): Publications, Financial Stability Report
• June 21, 2006

  Bank of Canada Oversight Activities during 2005 under the Payment Clearing and Settlement Act

  Financial System Review - June 2006 Clyde Goodlet

  Content Type(s): Publications, Financial System Review articles