Interest Rate Uncertainty as a Policy Tool Staff Working Paper 2020-13 Fabio Ghironi, Galip Kemal Ozhan We study a novel policy tool—interest rate uncertainty—that can be used to discourage inefficient capital inflows and to adjust the composition of external account between shortterm securities and foreign direct investment (FDI). Content Type(s): Staff research, Staff working papers Topic(s): International financial markets, Monetary policy and uncertainty, Monetary policy framework JEL Code(s): E, E3, E32, F, F2, F21, F3, F32, G, G1, G15
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 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
Changing Fortunes: Long-Termism—G-Zero, Artificial Intelligence and Debt Staff Discussion Paper 2019-12 Stephen S. Poloz This paper discusses three long-term forces that are acting on the global economy and their implications for companies and policy-makers. Content Type(s): Staff research, Staff discussion papers Topic(s): Financial stability, International topics, Monetary policy, Monetary policy and uncertainty, Trade integration JEL Code(s): E, E6, E63, F, F0, F02, F1, F15, F5, F53, F6, H, O, O1, O11, O3, O33
November 19, 2019 Climate change is a big issue for central banks Erik Ens, Adrian Guerin Climate change is transforming the economy and financial system Content Type(s): Publications, The Economy, Plain and Simple Topic(s): Asset pricing, Climate change, Financial stability, Financial system regulation and policies, Inflation and prices, Market structure and pricing, Monetary policy and uncertainty
Technological Progress and Monetary Policy: Managing the Fourth Industrial Revolution Staff Discussion Paper 2019-11 Stephen S. Poloz This paper looks at the implications for monetary policy of the widespread adoption of artificial intelligence and machine learning, which is sometimes called the “fourth industrial revolution.” Content Type(s): Staff research, Staff discussion papers Topic(s): Economic models, Financial stability, Monetary policy and uncertainty, Monetary policy framework JEL Code(s): C, C5, E, E3, O, O1, O11, O3, O33
February 21, 2019 Toward 2021: The Power—and Limitations—of Policy Remarks Stephen S. Poloz The Chamber of Commerce of Metropolitan Montreal Montréal, Quebec Governor Poloz explains that monetary policy is a powerful tool to promote economic welfare, but it also has some important limits. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Central bank research, Financial stability, Inflation targets, Monetary policy and uncertainty, Monetary policy framework, Recent economic and financial developments
Monetary Policy Uncertainty: A Tale of Two Tails Staff Working Paper 2018-50 Tatjana Dahlhaus, Tatevik Sekhposyan We document a strong asymmetry in the evolution of federal funds rate expectations and map this observed asymmetry into measures of monetary policy uncertainty. We show that periods of monetary policy tightening and easing are distinctly related to downside (policy rate is higher than expected) and upside (policy rate is lower than expected) uncertainty. Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Econometric and statistical methods, Monetary policy and uncertainty, Monetary policy communications, Monetary policy transmission JEL Code(s): C, C1, C18, C3, C32, E, E0, E02, E4, E43, E5, E52
September 6, 2018 An Update on Canada’s Economic Resilience Remarks Carolyn A. Wilkins Saskatchewan Trade & Export Partnership Regina, Saskatchewan Senior Deputy Governor Wilkins discusses economic developments since the July Monetary Policy Report and Governing Council’s deliberations leading to yesterday’s policy rate decision. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Economic models, Inflation targets, Interest rates, Monetary policy, Monetary policy and uncertainty, Recent economic and financial developments, Trade integration
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
May 31, 2018 A Progress Report on the Economy Remarks Sylvain Leduc Association des économistes québécois and CFA Québec Québec, Québec Deputy Governor Sylvain Leduc discusses the issues that led Governing Council to hold the policy interest rate at 1.25 per cent in their May 30 decision. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Inflation and prices, Interest rates, Labour markets, Monetary policy, Monetary policy and uncertainty, Recent economic and financial developments