March 6, 2020 Evaluating our approach to monetary policy James (Jim) C. MacGee, Rhys R. Mendes Inflation targeting has been successful in Canada over the past 30 years. But is it the best we can do? The Bank of Canada asks itself, and Canadians, that question every five years. Content Type(s): Publications, The Economy, Plain and Simple Research Topic(s): Credibility, Inflation targets, Inflation: costs and benefits, Interest rates, Monetary policy framework, Price stability
March 5, 2020 Labour market is key to Canada’s resilience Speech summary Stephen S. Poloz Women in Capital Markets Toronto, Ontario Governor Stephen S. Poloz talks about how the labour market is a key source of resilience for Canada’s economy and reviews the Bank of Canada’s decision to lower interest rates. Content Type(s): Press, Speeches and appearances, Speech summaries Research Topic(s): Coronavirus disease (COVID-19), Interest rates, Labour markets, Monetary policy, Recent economic and financial developments
March 5, 2020 Economic Progress Report: We All Have Work to Do Remarks Stephen S. Poloz Women in Capital Markets Toronto, Ontario Governor Stephen S. Poloz discusses the Bank’s latest interest rate announcement as well as Canada’s labour market—an important source of economic resilience. Content Type(s): Press, Speeches and appearances, Remarks Research Topic(s): Coronavirus disease (COVID-19), Interest rates, Labour markets, Monetary policy, Recent economic and financial developments
The Effect of Mortgage Rate Resets on Debt: Evidence from TransUnion (Part I) Staff Analytical Note 2020-2 Katya Kartashova This note studies how decreases in mortgage rates affect the behaviour of borrowers in terms of spending on durable goods and repaying debt. Content Type(s): Staff research, Staff analytical notes Research Topic(s): Credit and credit aggregates, Housing, Interest rates, Monetary policy, Monetary policy transmission JEL Code(s): D, D1, D12, D14, E, E4, E43, E5, E52, G, G2, G21, R, R3, R31
The Power of Helicopter Money Revisited: A New Keynesian Perspective Staff Discussion Paper 2020-1 Thomas J. Carter, Rhys R. Mendes We analyze money financing of fiscal transfers (helicopter money) in two simple New Keynesian models: a “textbook” model in which all money is non-interest-bearing (e.g., all money is currency), and a more realistic model with interest-bearing reserves. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Credibility, Economic models, Fiscal policy, Inflation targets, Interest rates, Monetary policy, Monetary policy and uncertainty, Monetary policy framework, Monetary policy transmission JEL Code(s): E, E1, E12, E4, E41, E43, E5, E51, E52, E58, E6, E61, E63
February 5, 2020 Securing prosperity is up to all of us Speech summary Carolyn A. Wilkins Economic Club of Canada Toronto, Ontario Senior Deputy Governor Carolyn A. Wilkins explains that Canada is well-positioned to secure prosperity and avoid a long period of slow growth if we take the right steps. Content Type(s): Press, Speeches and appearances, Speech summaries Research Topic(s): Business fluctuations and cycles, Fiscal policy, Interest rates, International topics, Monetary policy framework, Potential output, Productivity
February 5, 2020 Our Economic Destiny: Written in R-stars? Remarks Carolyn A. Wilkins Economic Club of Canada Toronto, Ontario Senior Deputy Governor Carolyn A. Wilkins talks about how to navigate slow growth and discusses the types of policies that would help secure long-term prosperity. Content Type(s): Press, Speeches and appearances, Remarks Research Topic(s): Business fluctuations and cycles, Fiscal policy, Interest rates, International topics, Monetary policy framework, Potential output, Productivity
January 30, 2020 How vulnerabilities like debt can affect interest rates Speech summary Paul Beaudry Laval University Québec, Québec Deputy Governor Paul Beaudry explains to students at Laval University why financial vulnerabilities—such as household debt—are important for the Bank of Canada when it sets interest rates. Content Type(s): Press, Speeches and appearances, Speech summaries Research Topic(s): Central bank research, Credit risk management, Financial stability, Inflation targets, Interest rates, Monetary policy, Monetary policy framework, Monetary policy implementation
January 30, 2020 Monetary Policy and Financial Vulnerabilities Remarks Paul Beaudry Université Laval Québec, Québec Deputy Governor Paul Beaudry discusses how financial vulnerabilities present a challenge for monetary policy. Content Type(s): Press, Speeches and appearances, Remarks Research Topic(s): Central bank research, Credit risk management, Financial stability, Inflation targets, Interest rates, Monetary policy, Monetary policy framework, Monetary policy implementation
Managing GDP Tail Risk Staff Working Paper 2020-3 Thibaut Duprey, Alexander Ueberfeldt Models for macroeconomic forecasts do not usually take into account the risk of a crisis—that is, a sudden large decline in gross domestic product (GDP). However, policy-makers worry about such GDP tail risk because of its large social and economic costs. Content Type(s): Staff research, Staff working papers Research Topic(s): Central bank research, Economic models, Financial stability, Financial system regulation and policies, Interest rates, Monetary policy, Monetary policy framework JEL Code(s): D, D8, E, E4, E44, E5, E52, E58, G, G0, G01