The Goal of Price Stability: A Review of the Issues Technical Report No. 54 Jack Selody The basic responsibility of a central bank is to preserve the value of money—that is, to maintain stability in the general level of prices. This report pulls together the main arguments for and against price stability as the appropriate goal for monetary policy. The available evidence suggests that the benefits of price stability are many […] Content Type(s): Staff research, Technical reports Research Topic(s): Inflation targets JEL Code(s): E, E3, E31, E5, E50
International Interest Rate Linkages and Monetary Policy: A Canadian Perspective Technical Report No. 52 John Murray, Ritha Khemani This paper examines the implications of increased international capital mobility and asset substitutability for domestic monetary policy in a small open economy such as Canada. Alternative definitions of international financial market integration are presented and tested in the context of two popular macro models. In the main, results suggest that interest rate relationships in Canada […] Content Type(s): Staff research, Technical reports Research Topic(s): Interest rates, International topics JEL Code(s): E, E5, E50, F, F3, F33