Posts
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Targeting Inflation from Below - How Do Inflation Expectations Behave?
Inflation targeting (IT) had originally been introduced as a device to bring inflation down and stabilize it at low levels. Given the current environment of persistently weak inflation in many advanced economies, IT central banks must now bring inflation up to target. -
How changes in the share of constrained households affect the effectiveness of monetary policy
We measure how the change in the share of constrained households in Canada following the COVID-19 recession has impacted the effectiveness of monetary policy. -
Stagflation and Topsy-Turvy Capital Flows
Unregulated capital flows are likely excessive during a stagflation episode, owing to a macroeconomic externality operating through the economy’s supply side. Inflows raise domestic wages and cause unwelcome upward pressure on firm costs, yet market forces likely generate such inflows. Optimal capital flow management instead requires net outflows. -
Is the stock market pricing in a V‑shaped recovery?
Major stock indexes have bounced back from their March 23 trough to about 10 percent below their peaks. However, stocks that are more sensitive to the business cycle have not performed as well during this market rally. This suggests that stock markets are pricing in a slower, shallower economic recovery. -
March 29, 2007
Promoting Sound Economic Policies Globally and Locally
In my opinion, much of this performance can be credited to the increasingly widespread acceptance of the need for a liberalized worldwide financial and trade order. Many countries that once closed themselves to the outside world are now actively engaged in the global economy. -
March 22, 2018
Financial Stability: Taking Care of Unfinished Business
Senior Deputy Governor Carolyn A. Wilkins discusses three areas in which work remains to be done to improve financial stability. -
A Review of the Bank of Canada’s Market Operations Related to COVID-19
This paper reviews the range of extraordinary programs launched by the Bank of Canada in response to the pandemic-related financial market disruption. It provides some recommendations for future interventions to ensure the programs are appropriately structured for the financial and economic stresses they are intended to address. -
April 20, 1999
Opening Statement before the Standing Senate Committee on Banking, Trade and Commerce
Since we have recently tabled the Bank of Canada’s Annual Report in Parliament, I would also be happy to answer any questions you may have about our stewardship of the Bank. -
March 26, 2015
Central Bank Credibility and Policy Normalization
Governor Poloz discusses the recent rise in financial market volatility and low long-term borrowing costs, and what they both mean for central bank credibility.