February 21, 2019 Price check: Inflation in Canada Sharon Kozicki, Jill Vardy, Laurence Savoie-Chabot Why prices change, and what it means for the economy. Content Type(s): Publications, The Economy, Plain and Simple Topic(s): Business fluctuations and cycles, Credibility, Expectations, Inflation and prices, Inflation targets, Inflation: costs and benefits, Monetary policy framework, Monetary policy transmission, Price stability
Limited Commitment, Endogenous Credibility and the Challenges of Price-level Targeting Staff Working Paper 2018-61 Gino Cateau, Malik Shukayev This paper studies the cost of limited commitment when a central bank has the discretion to adjust policy whenever the costs of honoring its past commitments become high. Specifically, we consider a central bank that seeks to implement optimal policy in a New Keynesian model by committing to a price-level target path. Content Type(s): Staff research, Staff working papers Topic(s): Credibility, Inflation targets, Monetary policy framework JEL Code(s): E, E3, E31, E5, E52
Credibility, Flexibility and Renewal: The Evolution of Inflation Targeting in Canada Staff Discussion Paper 2018-18 Thomas J. Carter, Rhys R. Mendes, Lawrence L. Schembri In 1991, Canada became the second country to adopt an inflation target as a central pillar of its monetary policy framework. The regime has proven much more successful than initially expected, both in achieving price stability and in stabilizing the real economy against a wide range of shocks. Content Type(s): Staff research, Staff discussion papers Topic(s): Credibility, Inflation targets, Monetary policy, Monetary policy framework JEL Code(s): E, E5, E52, E58, E6, E61
September 28, 2018 Welcome to The Economy, Plain and Simple Donald Coletti The economy starts with you. Content Type(s): Publications, The Economy, Plain and Simple Topic(s): Credibility, Monetary policy communications, Recent economic and financial developments
Readability and the Bank of Canada Staff Analytical Note 2018-20 Alexandre Deslongchamps In this note, I assess the readability of Bank of Canada publications using a formula commonly used for this type of evaluation. I find that Bank publications are more difficult to read than the media articles and other content our target audiences likely consume. This suggests that more simple writing can help the Bank better meet its communication objectives. Content Type(s): Staff research, Staff analytical notes Topic(s): Credibility, Monetary policy communications JEL Code(s): D, D8, D83
June 27, 2018 Let Me Be Clear: From Transparency to Trust and Understanding Remarks Stephen S. Poloz Greater Victoria Chamber of Commerce Victoria, British Columbia Governor Poloz talks about how the Bank is improving communications with the public and helping financial markets understand its monetary policy approach. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Credibility, Financial markets, Inflation targets, Monetary policy, Monetary policy and uncertainty, Recent economic and financial developments
February 15, 2018 Anchoring Expectations: Canada’s Approach to Price Stability Remarks Lawrence L. Schembri Manitoba Association for Business Economists Winnipeg, Manitoba Deputy Governor Lawrence Schembri examines the success of the Bank’s monetary policy framework and explains the review being undertaken before its renewal in 2021. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Central bank research, Credibility, Fiscal policy, Inflation and prices, Inflation targets, Monetary policy framework
Communicating Uncertainty in Monetary Policy Staff Discussion Paper 2017-14 Sharon Kozicki, Jill Vardy While central banks cannot provide complete foresight with respect to their future policy actions, it is in the interests of both central banks and market participants that central banks be transparent about their reaction functions and how they may evolve in response to economic developments, shocks, and risks to their outlooks. Content Type(s): Staff research, Staff discussion papers Topic(s): Credibility, Monetary policy, Monetary policy and uncertainty, Monetary policy communications JEL Code(s): E, E5, E52, E58, E6, E61, E65
September 14, 2017 Bank of Canada Workshop “Monetary Policy Framework Issues: Toward the 2021 Inflation-Target Renewal” Remarks Lawrence L. Schembri Ottawa, Ontario Deputy Governor Lawrence Schembri opens the Bank’s Monetary Policy Framework Issues: Toward the 2021 Inflation-Target Renewal workshop. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Central bank research, Credibility, Inflation and prices, Inflation targets, International topics, Monetary policy framework
November 1, 2016 25 Years of Inflation Targets: Certainty for Uncertain Times Remarks Stephen S. Poloz Business Council of British Columbia Vancouver, British Columbia Governor Stephen S. Poloz discusses the renewal of Canada’s inflation-targeting agreement and how it continues to help the economy. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Central bank research, Credibility, Inflation targets, Inflation: costs and benefits, Monetary aggregates, Monetary policy framework