February 21, 2019
Credibility
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Limited Commitment, Endogenous Credibility and the Challenges of Price-level Targeting
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. -
Credibility, Flexibility and Renewal: The Evolution of Inflation Targeting in Canada
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. -
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Readability and the Bank of Canada
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. -
June 27, 2018
Let Me Be Clear: From Transparency to Trust and Understanding
Governor Poloz talks about how the Bank is improving communications with the public and helping financial markets understand its monetary policy approach. -
February 15, 2018
Anchoring Expectations: Canada’s Approach to Price Stability
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. -
Communicating Uncertainty in Monetary Policy
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. -
September 14, 2017
Bank of Canada Workshop “Monetary Policy Framework Issues: Toward the 2021 Inflation-Target Renewal”
Deputy Governor Lawrence Schembri opens the Bank’s Monetary Policy Framework Issues: Toward the 2021 Inflation-Target Renewal workshop. -
November 1, 2016
25 Years of Inflation Targets: Certainty for Uncertain Times
Governor Stephen S. Poloz discusses the renewal of Canada’s inflation-targeting agreement and how it continues to help the economy.