September 14, 2000 The Outlook for the Canadian Economy and the Conduct of Monetary Policy Remarks Gordon Thiessen Calgary Chamber of Commerce Calgary, Alberta Today, I would like to bring you up to date on the Bank of Canada's views about the outlook for the Canadian economy. Prospects for the period ahead are generally very favourable. Content Type(s): Press, Speeches and appearances, Remarks
September 14, 2000 Bank of Canada Governor reviews economic developments and outlines proposed new arrangements for announcing interest rate changes Media Relations Calgary, Alberta In a speech to the Calgary Chamber of Commerce today, Bank of Canada Governor Gordon Thiessen gave an update on the Bank's outlook for the Canadian economy. He also outlined plans to move to a system of pre-set dates for announcing changes in official interest rates as part of the Bank's ongoing efforts to improve […] Content Type(s): Press, Press releases
Les effets réels du cours des actions sur la consommation Staff Working Paper 2000-21 Lise Pichette During the nineties, stock prices increased remarkably. The number of households owning stocks also rose considerably. If stock market wealth has an effect on consumers' decisions, then the rise in equity prices could have contributed to the growth in consumption in recent years. Content Type(s): Staff research, Staff working papers
Inflation and the Tax System in Canada: An Exploratory Partial-Equilibrium Analysis Staff Working Paper 2000-18 Brian O'Reilly, Mylène Levac This paper reports on an exploratory application to Canadian data of an approach pioneered by Martin Feldstein (1997, 1999). Feldstein finds that even at low inflation rates there are costs arising from the distortions introduced by the interaction of inflation with the taxation of income from capital (capital gains, dividends, and interest) in a less-than-perfectly-indexed tax system. Content Type(s): Staff research, Staff working papers Topic(s): Inflation: costs and benefits JEL Code(s): E, E5, E6
August 16, 2000 Monetary Policy Report Update – August 2000 Information received since the last Monetary Policy Report continues to show solid economic growth in the United States, Europe, and the emerging markets. Content Type(s): Publications, Monetary Policy Report
August 16, 2000 The Changing Face of Central Banking in the 1990s Bank of Canada Review - Summer 2000 Graydon Paulin During the 1990s, central banks in the industrialized countries made important changes in the way they operate. As part of these initiatives, central banks have endeavoured to define a set of best practices, learning from each other in the process. The goal was to improve and adapt the frameworks within which monetary policy is implemented. Clarifying Objectives A clear objective is a necessary starting point for any policy framework. The growing consensus that price stability is the most appropriate objective for monetary policy was perhaps one of the most critical developments of the past decade. Price stability is now universally regarded as the key contribution that monetary policy can make to promote sustainable growth and maximize the level of employment. Central banks also need a clear strategy for achieving their objective. A major development of the past decade was the growing popularity of inflation targets as the numerical focus for monetary policy. Clearly defined inflation targets focus policy on the variable that is directly associated with price stability. The Bank of Canada was one of the first to adopt (in 1991) a set of targets for inflation over a specified time horizon. Accountability Many central banks have acquired greater independence and this, together with the public's desire for more information from key public institutions, has raised the standards for accountability. At the same time, explicit targets provide a clear measure against which to judge the performance of the monetary authorities. Increased accountability also has implications for the overall transparency of the monetary authorities. In sum, central banks have become much more open institutions and are placing greater emphasis on their communications activities. As an example, comprehensive inflation reports have become key communications vehicles for a number of central banks. Many of the changes implemented by central banks stem from the desire to improve the credibility of monetary policy, thus making it easier for monetary authorities to achieve their objectives. Although it is difficult to ascertain the overall effect of the evolving policy framework, it is encouraging that inflation and inflation expectations were at low levels at the end of the 1990s, thus providing a solid base for monetary policy in the future. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Credibility, Inflation targets, International topics, Monetary policy framework
August 16, 2000 Bank of Canada Review - Summer 2000 Cover page Early French Scale The pieces featured on our cover form part of the National Currency Collection, Bank of Canada. Photography by James Zagon. Content Type(s): Publications, Bank of Canada Review
August 16, 2000 Release of the Monetary Policy Report Update Opening statement Gordon Thiessen This morning we released our update to the May Monetary Policy Report. Overall, the outlook for Canadian economic growth and inflation is positive. Economic activity in Canada has remained strong since our May Report. Nonetheless, the underlying trend of inflation has been unexpectedly low - in the bottom half of our 1 to 3 per […] Content Type(s): Press, Speeches and appearances, Opening statements
August 15, 2000 Restructuring in the Canadian Economy: A Survey of Firms Bank of Canada Review - Summer 2000 Carolyn Kwan Towards the end of the 1980s and into the early 1990s, the Canadian economy experienced a number of structural changes. These included free trade agreements (both the FTA and NAFTA), significant technological advances, deregulation in many sectors of the economy, the arrival of large, U.S.-based retailers, and the introduction of the GST. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Labour markets, Productivity, Regional economic developments
August 14, 2000 Follow up on proposed modifications to Government of Canada Bond operations On July 21, 2000, the Bank of Canada announced that the Bank and the Department of Finance would be seeking the views of market participants on the feasibility of implementing a cash management buyback program and on the possibility of reverting back to March and September maturity dates for two-year bonds. Content Type(s): Press, Market notices