E50 - General

• The Goal of Price Stability: A Review of the Issues

  Technical Report No. 54 Jack Selody

  The basic responsibility of a central bank is to preserve the value of money—that is, to maintain stability in the general level of prices. This report pulls together the main arguments for and against price stability as the appropriate goal for monetary policy. The available evidence suggests that the benefits of price stability are many […]

  Content Type(s): Staff research, Technical reports Topic(s): Inflation targets JEL Code(s): E, E3, E31, E5, E50

• International Interest Rate Linkages and Monetary Policy: A Canadian Perspective

  Technical Report No. 52 John Murray, Ritha Khemani

  This paper examines the implications of increased international capital mobility and asset substitutability for domestic monetary policy in a small open economy such as Canada. Alternative definitions of international financial market integration are presented and tested in the context of two popular macro models. In the main, results suggest that interest rate relationships in Canada […]

  Content Type(s): Staff research, Technical reports Topic(s): Interest rates, International topics JEL Code(s): E, E5, E50, F, F3, F33