November 17, 2001 Predictability of Average Inflation over Long Time Horizons Bank of Canada Review - Autumn 2001 Allan Crawford Uncertainty about the level of future inflation adversely affects the economy because it distorts the savings and investment decisions of households and businesses. Since these decisions typically involve planning horizons of many years, the adverse effects from inflation uncertainty can be reduced by adopting a policy framework that makes future inflation more predictable over long time horizons. When the inflation-control target was renewed in May 2001, the agreement affirmed that monetary policy will be directed at moving inflation to the 2 per cent midpoint of the target range over a six-to-eight-quarter horizon. The author describes how this policy commitment increases the predictability of average inflation over periods longer than one year. This relationship is illustrated using the Canadian experience from the inflation-targeting period. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Inflation targets
May 16, 2001 Core Principles for Systemically Important Payments Systems and Their Application in Canada Bank of Canada Review - Spring 2001 Clyde Goodlet Systemically important payments systems are systems that, because of the size or the nature of the payments they process, could trigger or transmit serious shocks across domestic or international financial systems if they were insufficiently protected against risk. This article describes the overall framework of core principles developed for the design, operation, and oversight of such payments systems. The article reviews the role of the task force established to develop the core principles and examines the core principles themselves. It also examines the role of central banks in overseeing major payments systems and in applying the core principles to them. The focus is on the Bank of Canada's oversight responsibilities under the Payment Clearing and Settlement Act and on Canada's systemically important payments system—the LVTS. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Payment clearing and settlement systems
June 16, 2010 A Bold Response Is Required to Secure the Economic Recovery, Says Bank of Canada Governor Mark Carney Media Relations Charlottetown, Prince Edward Island The recent recession was not an ordinary downturn, and a bold response from the public and private sectors in Canada and globally is required to secure the economic recovery, Bank of Canada Governor Mark Carney said today. Content Type(s): Press, Press releases
June 1, 2010 Bank of Canada increases overnight rate target to 1/2 per cent and re-establishes normal functioning of the overnight market Media Relations Ottawa, Ontario The Bank of Canada today announced that it is raising its target for the overnight rate by one-quarter of one percentage point to 1/2 per cent. Content Type(s): Press, Press releases
June 1, 2010 Re-Establishment of the Standard Operating Framework for the Implementation of Monetary Policy Media Relations Ottawa, Ontario As part of the Bank of Canada's interest rate decision on 1 June 2010, the Bank will re-establish the standard operating framework for the implementation of monetary policy. Content Type(s): Press, Press releases
May 14, 2010 17th Annual Meetings of Gouverneurs des banques centrales des pays francophones Media Relations Ottawa, Ontario As part of events related to its 75th anniversary, the Bank of Canada hosted the 17th annual meetings of Gouverneurs des banques centrales des pays francophones in Montréal from 12 to 14 May 2010. Content Type(s): Press, Press releases
January 30, 2007 Annual Report 2006 The year 2006 marked a turning point for the Bank of Canada. We successfully completed our medium-term plan, The Way Forward, and began writing a fresh chapter in the Bank’s history based on a new three-year plan. In this annual report, we do more than give an accounting of past achievements. We also provide forward-looking information on the plans and priorities in our new medium-term plan. And as we advance, we are always mindful of the Bank’s original mandate, set out more than 70 years ago, to “promote the economic and financial welfare of Canada.” Content Type(s): Publications, Annual Report
May 20, 2003 Updating the Bank of Canada Commodity Price Index Bank of Canada Review - Spring 2003 Todd Hirsch The Bank of Canada Commodity Price Index (BCPI) summarizes the price movements of 23 commodities produced in Canada. Information provided by the BCPI is used in analyzing movements in GDP, industrial producer prices, inflation, and the exchange rate. Effective 15 May 2003, a number of changes will be reflected in the BCPI. To ensure that the index accurately reflects the natural resource sectors of the economy, a number of new components and pricing sources have been incorporated into the BCPI. Weights in the new index will be chained to 1 January 1991 and 1 January 2000 to better reflect contemporary values. Content Type(s): Publications, Bank of Canada Review articles
May 22, 2003 Bank of Canada Review - Spring 2003 Cover page Seventeenth-Century English Tradesmen's Tokens The tokens pictured on the cover are part of the National Currency Collection. Photographed by Gord Carter, Ottawa. Content Type(s): Publications, Bank of Canada Review
October 20, 2006 MUSE: The Bank of Canada's New Projection Model of the U.S. Economy Bank of Canada Review - Autumn 2006 Marc-André Gosselin, René Lalonde, Nicolas Parent Staff projections provided for the Bank of Canada's monetary policy decision process take into account the integration of Canada's very open economy within the global economy, as well as its close real and financial linkages with the United States. To provide inputs for this projection, the Bank has developed several models, including MUSE, NEUQ (the New European Quarterly Model), and BoC-GEM (Bank of Canada Global Economy Model), to analyze and forecast economic developments in the rest of the world. The authors focus on MUSE, the model currently used to describe interaction among the principal U.S. economic variables, including gross domestic product, inflation, interest rates, and the exchange rate. Brief descriptions are also provided of NEUQ and BoC-GEM. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Econometric and statistical methods, Economic models, International topics