Posts
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Monetary Rules When Economic Behaviour Changes
This paper examines the implications of changes in economic behaviour for simple inflation-forecast–based monetary rules of the type currently used at two inflation-targeting central banks. Three types of changes in economic behaviour are considered, changes that are motivated by developments in monetary and fiscal policy in the 1990s: changes in monetary policy credibility, changes in […] -
The Quantity of Money and Monetary Policy
The relationships among the quantity theory of money, monetarism and policy regimes based on money-growth and inflation targeting are briefly discussed as a prelude to an exposition of alternative views of money's role in the transmission mechanism of monetary policy. The passive-money view treats the money supply as an endogenous variable that plays no role […] -
Inflation Targeting under Uncertainty
This paper studies the implications of certain kinds of uncertainty for monetary policy. It first describes the optimum policy rule in a simple model of the transmission mechanism as in Ball and Svensson. -
March 31, 1999
Bank Rate Lowered by ¼ Percentage Point to 5 Per Cent
The Bank of Canada today lowered its Bank Rate by ¼ of one per cent to 5 per cent. The associated operating band for overnight interest rates was similarly reduced. -
March 22, 1999
Financial sector reform, the economy, and monetary policy
I am delighted to be with you this evening to celebrate the 35th annual meeting of the Mennonite Savings and Credit Union. On this occasion, I propose to speak about the Canadian economy and monetary policy. But given this audience, I thought I might start with some remarks on the future of the Canadian financial sector - a subject that has certainly grabbed its share of headlines over the past year! -
March 22, 1999
Bank of Canada Governor speaks to the Mennonite Savings and Credit Union
In a speech delivered today to the 35th annual meeting of the Mennonite Savings and Credit Union, Bank of Canada Governor Gordon Thiessen talked about financial sector reform, the economy, and monetary policy. -
March 11, 1999
Then and now: the change in views on the role of monetary policy since the Porter Commission
Tony Hampson made a number of outstanding contributions to Canadian public life as well as having a successful business career. Many in this audience will be familiar with the fact that for a number of years he was Chairman of the C.D. Howe Institute's Policy Analysis Committee. -
The Exchange Rate Regime and Canada's Monetary Order
It is a mistake to debate the merits of alternative exchange rate regimes for Canada independently of other features of the monetary order. A coherent order requires a well-defined goal for monetary policy, one that the authorities are capable of achieving, and that anchors private sector expectations. For it to be liberal, the relevant authorities […] -
An Intraday Analysis of the Effectiveness of Foreign Exchange Intervention
This paper assesses the effectiveness of Canada's official foreign exchange intervention in moderating intraday volatility of the Can$/US$ exchange rate, using a 2-1/2-year sample of 10-minute exchange rate data. The use of high frequency data (higher than daily frequency) should help in assessing the impact of intervention since the foreign exchange market is efficient and […]