Markets Look Beyond the Headline Staff Analytical Note 2018-37 Bruno Feunou, James Kyeong, Raisa Leiderman Many reports and analyses interpret the release of new economic data based on the headline surprise—for instance, total inflation, real GDP growth and the unemployment rate. However, we find that headline news alone cannot adequately explain the responses of market prices to new information. Rather, market prices react more strongly, on average, to non-headline news such as the composition of GDP growth, quality of jobs created and revisions to past data. Thus, tracking the impact of non-headline information released on the news day is crucial in analyzing how markets interpret and react to new economic data. Content Type(s): Staff research, Staff analytical notes Topic(s): Asset pricing, Exchange rates, Interest rates JEL Code(s): E, E4, E43, G, G1, G12, G14
November 23, 2018 Expansion of Assets the Bank of Canada will Acquire for Balance Sheet Management Purposes As part of the regular management of its balance sheet, the Bank of Canada acquires securities to offset its liabilities, which consist mainly of bank notes in circulation and Government of Canada deposits. Content Type(s): Press, Market notices
An Alternative Estimate of Canadian Potential Output: The Multivariate State-Space Framework Staff Discussion Paper 2018-14 Lise Pichette, Maria Bernier, Marie-Noëlle Robitaille In this paper, we extend the state-space methodology proposed by Blagrave et al. (2015) and decompose Canadian potential output into trend labour productivity and trend labour input. As in Blagrave et al. (2015), we include output growth and inflation expectations from consensus forecasts to help refine our estimates. Content Type(s): Staff research, Staff discussion papers Topic(s): Economic models, Potential output JEL Code(s): C, C5, E, E0, E5
November 22, 2018 Balancing Act: the Link between Monetary Policy and Financial Stability Presentation Carolyn A. Wilkins Canada Mortgage and Housing Corporation National Housing Conference Ottawa, Ontario Senior Deputy Governor Carolyn A. Wilkins discusses how monetary and macroprudential policies interact with each other and how they affect financial stability. Content Type(s): Press, Speeches and appearances, Presentations
November 20, 2018 Bank to review the monetary policy framework ahead of 2021 renewal, says Senior Deputy Governor Wilkins Media Relations Montréal, Quebec The Bank of Canada will assess a broad range of monetary policy frameworks ahead of the renewal in 2021 of the inflation-control agreement, a joint agreement between the federal government and the Bank that is renewed every five years, Senior Deputy Governor Carolyn A. Wilkins said today at McGill University’s Max Bell School of Public […] Content Type(s): Press, Press releases
November 20, 2018 Choosing the Best Monetary Policy Framework for Canada Remarks Carolyn A. Wilkins McGill University Max Bell School of Public Policy Montréal, Quebec Senior Deputy Governor Carolyn A. Wilkins discusses public policy issues around monetary policy frameworks and how those issues have become more complex in the post-global financial crisis world. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Central bank research, Fiscal policy, Inflation and prices, Inflation targets, Interest rates, Monetary policy framework
November 19, 2018 New vertical $10 bank note featuring iconic Canadian Viola Desmond now in circulation Media Relations Winnipeg, Manitoba The Bank of Canada today issued the new vertical $10 bank note featuring the portrait of social justice icon Viola Desmond, during a ceremony at the Canadian Museum for Human Rights (CMHR) in Winnipeg. Content Type(s): Press, Press releases Topic(s): Bank notes