December 10, 2007
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282
result(s)
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.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Inflation and prices,
International topics,
Recent economic and financial developments
The Direct Effect of China on Canadian Consumer Prices: An Empirical Assessment
Staff Discussion Paper 2007-10
Louis Morel
The author investigates the direct effect of Chinese imported goods on consumer prices in Canada. On average, over the 2001–06 period, the direct effect of consumer goods imported from China is estimated to have reduced the inflation rate by about 0.1 percentage points per year. This disinflationary effect is due to two causes: first, the […]
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Inflation and prices
JEL Code(s):
E,
E3,
E31
Trend Inflation, Wage and Price Rigidities, and Welfare
Staff Working Paper 2007-42
Robert Amano,
Kevin Moran,
Stephen Murchison,
Andrew Rennison
This paper studies the steady-state costs of inflation in a general-equilibrium model with real per capita output growth and staggered nominal price and wage contracts.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation: costs and benefits
JEL Code(s):
E,
E0,
E5
Asset-Price Misalignments and Monetary Policy: How Flexible Should Inflation-Targeting Regimes Be?
Staff Discussion Paper 2007-6
Jack Selody,
Carolyn A. Wilkins
The authors analyze the extent to which inflation-targeting frameworks should incorporate flexibility in order to respond to asset-price misalignments and other atypical events. They examine the costs and benefits of adding flexibility to the Bank's current inflation-targeting framework, and conclude that maintaining low and stable consumer price inflation is the best contribution that monetary policy […]
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Inflation targets,
Monetary policy framework
JEL Code(s):
E,
E5,
E6
Liquidity, Redistribution, and the Welfare Cost of Inflation
Staff Working Paper 2007-39
Jonathan Chiu,
Miguel Molico
This paper studies the long run welfare costs of inflation in a micro-founded model with trading frictions and costly liquidity management.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation: costs and benefits
JEL Code(s):
E,
E4,
E40,
E5,
E50
Cross-Country Estimates of the Degree of Fiscal Dominance and Central Bank Independence
Staff Working Paper 2007-36
Carlos De Resende
This paper studies the interdependence between fiscal and monetary policies, and their joint role in the determination of the price level.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Fiscal policy,
Inflation: costs and benefits
JEL Code(s):
E,
E3,
E31,
E4,
E42,
E5,
E50,
E6,
E63
Gold Prices and Inflation
Staff Working Paper 2007-35
Greg Tkacz
Using data for 14 countries over the 1994 to 2005 period, we assess the leading indicator properties of gold at horizons ranging from 6 to 24 months.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
Inflation and prices
JEL Code(s):
E,
E3,
E31,
E4,
E44
Should Central Banks Adjust Their Target Horizons in Response to House-Price Bubbles?
Staff Discussion Paper 2007-4
Meenakshi Basant Roi,
Rhys R. Mendes
The authors investigate the implications of house-price bubbles for the optimal inflation-target horizon using a dynamic general-equilibrium model with credit frictions, house-price bubbles, and small open-economy features. They find that, given the distribution of shocks and inflation persistence over the past 25 years, the optimal target horizon for Canada tends to be at the lower […]
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Central bank research,
Credit and credit aggregates,
Economic models,
Inflation targets,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
E,
E4,
E42,
E44,
E5,
E52,
E58,
E6,
E61
Oil Price Movements and the Global Economy: A Model-Based Assessment
Staff Working Paper 2007-34
Selim Elekdag,
René Lalonde,
Douglas Laxton,
Dirk Muir,
Paolo Pesenti
We develop a five-region version (Canada, an oil exporter, the United States, emerging Asia and Japan plus the euro area) of the Global Economy Model (GEM) encompassing production and trade of crude oil, and use it to study the international transmission mechanism of shocks that drive oil prices.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Inflation and prices,
International topics
JEL Code(s):
E,
E6,
E66,
F,
F3,
F32,
F4,
F47