Publications

• April 9, 2009

  Bank of Canada Review - Spring 2009

  

  Examination of progress in the Bank’s exploration of two alternatives to the current inflation-targeting framework: (i) lowering the inflation target and (ii) shifting to a price-level target; a review of arguments for and against price-level targeting, focusing on its costs and benefits compared with inflation targeting; assessing the merits of price-level targeting vis-à-vis inflation targeting from a debt-revaluation perspective; quantifying redistribution of wealth in Canada in the face of unexpected inflation.

  Content Type(s): Publications, Bank of Canada Review
• April 8, 2009

  Price-Level Targeting and Stabilization Policy: A Review

  Bank of Canada Review - Spring 2009 Steve Ambler

  This article reviews arguments in the literature for and against price-level targeting, focusing on its costs and benefits compared with inflation targeting. Benefits of price-level targeting include the effect on forward-looking inflation expectations; the ability to substitute for commitment by a central bank to its future policies; lessening forecast errors; better economic performance in response to real shocks because of lower wage indexation; and a reduction in the problem of the zero lower bound on nominal interest rates.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Inflation and prices, Inflation: costs and benefits, Monetary policy framework
• April 7, 2009

  Price-Level Uncertainty, Price-Level Targeting, and Nominal Debt Contracts

  Bank of Canada Review - Spring 2009 Allan Crawford, Césaire Meh, Yaz Terajima

  Many central banks around the world have embraced inflation targeting as a monetary policy framework. Interest is growing, however, in price-level targeting as an alternative. The choice of frameworks has important consequences for financial contracts, most of which are not fully indexed to the price level. Changes in the price level therefore lead to changes in the real value of contracts.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Inflation targets, Inflation: costs and benefits, Monetary policy framework
• April 5, 2009

  Unexpected Inflation and Redistribution of Wealth in Canada

  Bank of Canada Review - Spring 2009 Césaire Meh, Yaz Terajima

  One of the most important arguments in favour of price stability is that unexpected inflation generates changes in the distribution of income and wealth among different economic agents. These redistributions occur because many loans are specified in fixed dollar terms and unexpected inflation redistributes wealth from creditors to debtors by reducing the real value of nominal assets and liabilities.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Central bank research, Inflation and prices, Inflation: costs and benefits, Sectoral balance sheet
• January 30, 2009

  Annual Report 2008

  

  It has been a difficult year. The financial turmoil that began mid-2007 deteriorated into a full-blown global financial crisis through 2008. While the resilience and soundness of the Canadian financial system were in many respects exceptional, the scale of the financial crisis and the subsequent global recession had an increasing impact by year’s end on our financial system and our economy.

  Content Type(s): Publications, Annual Report
• January 22, 2009

  Monetary Policy Report Update – January 2009

  The outlook for the global economy has deteriorated significantly since the October Monetary Policy Report. The financial crisis intensified last autumn and spilled over into an already weak global economy, which, in turn, put further strains on the financial system.

  Erratum: In Table 1 Interest Rates, the column "Estimated variable mortgage rate" should read 5.65 per cent for 4 December 2007 not 5.25.

  Content Type(s): Publications, Monetary Policy Report
• January 12, 2009

  Business Outlook Survey - Winter 2008-09

  Business sentiment has deteriorated markedly since the autumn survey, as the effects of the international financial crisis and the weak global economy intensified and spread to domestic demand. Almost all indicators are at their lowest level since the survey began in 1997.

  Content Type(s): Publications, Business Outlook Survey
• January 11, 2009

  Bank of Canada Review - Winter 2008-2009

  

  Cover page

  Chargex

  The artefacts 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
• December 31, 2008

  Summary of Government of Canada - Outstanding as at 31 December 2008

  Content Type(s): Publications, Historical: Securities and loans
• December 21, 2008

  Credit, Asset Prices, and Financial Stress in Canada

  Financial System Review - December 2008 Miroslav Misina, Pierre St-Amant, Greg Tkacz

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