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282
result(s)
The Zero Bound on Nominal Interest Rates: Implications for the Optimal Monetary Policy in Canada
Staff Discussion Paper 2007-1
Claude Lavoie,
Hope Pioro
The authors assess the performance of the Canadian economy under a variety of interest rate rules when the zero bound on nominal interest rates can bind. Their assessment is based on numerical simulations of a dynamic stochastic general-equilibrium model in a stochastic environment. Consistent with the literature, the authors find that the probability and consequences […]
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Inflation: costs and benefits,
Interest rates,
Monetary policy framework
JEL Code(s):
E,
E4,
E43,
E47,
E5,
E52
Central Bank Performance under Inflation Targeting
Staff Working Paper 2007-18
Marc-André Gosselin
The inflation targeting (IT) regime is 17 years old. With practice of IT now in more than 21 countries, there is enough evidence gathered to take stock of the IT experience. In this paper, we analyze the inflation record of IT central banks.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Inflation targets,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E5,
E52,
E58
Does Indexation Bias the Estimated Frequency of Price Adjustment?
Staff Working Paper 2007-15
Maral Kichian,
Oleksiy Kryvtsov
We assess the implications of price indexation for estimated frequency of price adjustment in sticky price models of business cycles. These models predominantly assume that non-reoptimized prices are indexed to lagged or average inflation.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Economic models,
Inflation and prices
JEL Code(s):
E,
E3,
E31,
E37
December 20, 2006
Why Monetary Policy Matters: A Canadian Perspective
This article provides answers to several key questions about Canadian monetary policy. First, what is monetary policy? Second, why does the Bank of Canada focus on the control of inflation rather than other macroeconomic variables? Third, how do the Bank's actions influence the rate of inflation? And, finally, how can monetary policy deliver genuine and significant benefits to society?
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Business fluctuations and cycles,
Inflation: costs and benefits,
Monetary policy framework
Survey-Based Estimates of the Term Structure of Expected U.S. Inflation
Staff Working Paper 2006-46
Sharon Kozicki,
P. A. Tinsley
Surveys provide direct information on expectations, but only short histories are available at quarterly frequencies or for long-horizon expectations.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Inflation targets,
Monetary policy and uncertainty
JEL Code(s):
E,
E3,
E5
Survey of Price-Setting Behaviour of Canadian Companies
Staff Working Paper 2006-35
David Amirault,
Carolyn Kwan,
Gordon Wilkinson
In many mainstream macroeconomic models, sticky prices play an important role in explaining the effects of monetary policy on the economy.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Monetary policy transmission
JEL Code(s):
D,
D4,
D40,
E,
E3,
E30,
L,
L1,
L11
The Macroeconomic Effects of Non-Zero Trend Inflation
Staff Working Paper 2006-34
Robert Amano,
Steve Ambler,
Nooman Rebei
The authors study the macroeconomic effects of non-zero trend inflation in a simple dynamic stochastic general-equilibrium model with sticky prices.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Economic models,
Inflation and prices,
Inflation targets
JEL Code(s):
E,
E2,
E24,
E3,
E32
Linear and Threshold Forecasts of Output and Inflation with Stock and Housing Prices
Staff Working Paper 2006-25
Greg Tkacz,
Carolyn A. Wilkins
The authors examine whether simple measures of Canadian equity and housing price misalignments contain leading information about output growth and inflation.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Inflation and prices
JEL Code(s):
C,
C5,
C53,
E,
E4
June 21, 2006
Credibility with Flexibility: The Evolution of Inflation-Targeting Regimes, 1990–2006
Beginning with a review of the adoption of inflation targeting in a broad group of countries, Paulin focuses on changes in the design of inflation-targeting frameworks in light of fifteen years of accumulated experience. Included in the discussion are the use of numerical targets and ranges, the policy horizon, supporting institutional policy structures, and communication, including the publication of forecasts. A recurring theme is how much flexibility an inflation-targeting regime allows. The article concludes that the changes made to the frameworks have been relatively modest since their adoption, but in concert with the improved credibility that has resulted from central banks meeting their inflation-control targets, they have allowed an increasingly nuanced response to economic shocks.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Credibility,
Inflation targets,
Monetary policy framework