October 21, 2007
Posts
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Price-Level Targeting and Stabilization Policy: A Review
The author surveys recent articles on the costs and benefits of price-level targeting versus inflation targeting, focusing on the benefits and costs of price-level targeting as a tool for stabilization policy. He reviews papers that examine how price-level targeting affects the short-run trade-off between output and inflation variability by influencing expectations of future inflation. The […] -
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October 18, 2007
Monetary Policy Report – October 2007
There have been a number of significant economic and financial developments since the time of the July Monetary Policy Report Update. -
October 18, 2007
Release of the Monetary Policy Report
Since the July Monetary Policy Report Update, and against a backdrop of robust global economic expansion and strong commodity prices, the Canadian economy has been stronger than projected. It is now operating further above its production potential than had been previously expected. -
October 18, 2007
Bank of Canada releases Monetary Policy Report
The Bank of Canada today released its October Monetary Policy Report, which discusses current economic and financial trends in the context of Canada's inflation-control strategy. -
October 16, 2007
Bank of Canada keeps target for the overnight rate at 4 1/2 per cent
The Bank of Canada today announced that it is maintaining its target for the overnight rate at 4 1/2 per cent. -
October 15, 2007
The Global Foreign Exchange Market: Growth and Transformation
Barker examines changes in the foreign exchange market, which is in a period of transition. Since the mid-1990s, three closely inter-related and mutually reinforcing factors–electronic trading platforms, a changing mix of market participants, and computer-driven algorithmic trading strategies–have been accelerating market growth and are creating a profound structural transformation. As the balance of market participation shifts between bank and non-bank accounts, large and small participants, and domestic and global players, the market is adopting some of the characteristics of an "exchange" model and is arguably becoming more liquid and operationally efficient. -
October 15, 2007
Bank of Canada Review - Autumn 2007
Cover page
Siamese Gaming Tokens
The tokens pictured here are part of the National Currency Collection, Bank of Canada.
Photography by Gord Carter, Ottawa. -
October 14, 2007
The Effect of China on Global Prices
The dramatic growth in China's exports of consumer goods such as clothing, toys, and electronics, and imports of primary commodities such as oil and metals is having major effects on global supply and demand. In examining China's role in global relative price changes, Francis finds that downward pressure on the relative prices of consumer goods is likely to persist as China's large labour supply continues its migration into manufacturing. Likewise, China's size and growth will also remain key drivers of global commodities demand for some time. Despite these forces, inflation-targeting central banks have the tools to keep inflation close to target, thus offsetting any persistent upward or downward inflationary pressure.