January 9, 2019
Posts
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January 9, 2019
Monetary Policy Report – January 2019
The Bank projects that Canadian economic growth will slow to 1.7 per cent this year before rebounding to 2.1 per cent in 2020. -
December 31, 2018
Research Update - December 2018
This monthly newsletter features the latest research publications by Bank of Canada economists including external publications and working papers published on the Bank of Canada’s website. -
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December 21, 2018
Business Outlook Survey—Winter 2018
Results from the winter Business Outlook Survey continue to indicate positive business sentiment and elevated capacity pressures in most regions. For firms in the Prairies, the outlook has weakened. -
December 21, 2018
Senior Loan Officer Survey—Fourth Quarter of 2018
Overall household lending conditions were unchanged this quarter, although mortgage approval rates were lower. More widespread easing of business lending conditions continues to be driven by competition for corporate borrowers. -
Limited Commitment, Endogenous Credibility and the Challenges of Price-level Targeting
This paper studies the cost of limited commitment when a central bank has the discretion to adjust policy whenever the costs of honoring its past commitments become high. Specifically, we consider a central bank that seeks to implement optimal policy in a New Keynesian model by committing to a price-level target path. -
Inference in Games Without Nash Equilibrium: An Application to Restaurants’ Competition in Opening Hours
This paper relaxes the Bayesian Nash equilibrium (BNE) assumption commonly imposed in empirical discrete choice games with incomplete information. Instead of assuming that players have unbiased/correct expectations, my model treats a player’s belief about the behavior of other players as an unrestricted unknown function. I study the joint identification of belief and payoff functions. -
Credibility, Flexibility and Renewal: The Evolution of Inflation Targeting in Canada
In 1991, Canada became the second country to adopt an inflation target as a central pillar of its monetary policy framework. The regime has proven much more successful than initially expected, both in achieving price stability and in stabilizing the real economy against a wide range of shocks. -
The Role of Corporate Saving over the Business Cycle: Shock Absorber or Amplifier?
We document countercyclical corporate saving behavior with the degree of countercyclicality varying nonmonotonically with firm size. We then develop a dynamic stochastic general equilibrium model with heterogeneous firms to explain the pattern and study its implications for business cycles.