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9106 Results

Price-Level Targeting and Inflation Expectations: Experimental Evidence

Staff Working Paper 2011-18 Robert Amano, Jim Engle-Warnick, Malik Shukayev
In this paper, we use an economics decision-making experiment to test a key assumption underpinning the efficacy of price-level targeting relative to inflation targeting for business cycle stabilization and mitigating the effects of the zero lower bound on nominal interest rates.
Content Type(s): Staff research, Staff working papers Topic(s): Monetary policy framework JEL Code(s): E, E3, E32, E5, E52
August 19, 2011

Opening Statement before the House of Commons Standing Committee on Finance

Opening statement Mark Carney House of Commons Standing Committee on Finance Ottawa, Ontario
Thank you for this opportunity to appear here today. Recent Economic and Financial Developments In recent weeks, several downside risks to the Bank’s July Monetary Policy Report (MPR) projection have been realised. The European sovereign crisis has intensified, the U.S. credit rating has been downgraded, and a broad range of data has signalled slower global […]
August 19, 2011

Standing Committee on Finance (Audio)

Governor Mark Carney and Senior Deputy Governor Tiff Macklem testify before the Standing Committee on Finance.
August 18, 2011

Bank of Canada Review - Summer 2011

This special issue, “Real-Financial Linkages,” examines the Bank’s research using theoretical and empirical models to improve its understanding of the linkages between financial and macroeconomic developments in the wake of the recent global financial crisis.
August 18, 2011

Introducing Multiple Interest rates in ToTEM

This article describes changes to the structure of ToTEM—the Bank of Canada’s main model for projection and policy analysis—that allow an independent role for long-term interest rates, as well as for the risk spreads that lead to differences in the interest rates faced by households, firms and the government. These changes broaden the range of policy questions that the model can address and improve its ability to explain data. The authors use the model to simulate the effects of shocks to the risk spreads on interest rates similar to those that occurred during the recent financial crisis. They also use the model to assess the macroeconomic impact of higher requirements for bank capital and liquidity.
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