Inflation and prices

• Monetary Policy Transmission amid Demand Reallocations

  Staff Working Paper 2024-42 Julien Bengui, Lu Han, Gaelan MacKenzie

  We analyze the transmission of monetary policy during different phases of a sectoral demand reallocation episode when there are frictions to increasing production in a sector. Monetary policy is more effective in reducing inflation when a larger proportion of sectors are expanding or expect to expand in the near future.

  Content Type(s): Staff research, Staff working papers Topic(s): Domestic demand and components, Inflation and prices, Monetary policy transmission JEL Code(s): E, E1, E12, E2, E24, E3, E31, E5, E52

• Immigration and US Shelter Prices: The Role of Geographical and Immigrant Heterogeneity

  Staff Working Paper 2024-40 James Cabral, Walter Steingress

  The arrival of immigrants increases demand for housing and puts upward pressure on shelter prices. Using instrumental variables based on the ancestry composition of residents in US counties, we estimate the causal impact of immigration on local shelter prices.

  Content Type(s): Staff research, Staff working papers Topic(s): Housing, Inflation and prices, International topics, Regional economic developments JEL Code(s): J, J6, J61, R, R2, R23, R3, R31

• Does Unconventional Monetary and Fiscal Policy Contribute to the COVID Inflation Surge in the US?

  Staff Working Paper 2024-38 Jing Cynthia Wu, Yinxi Xie, Ji Zhang

  We assess whether unconventional monetary and fiscal policy implemented in response to the COVID-19 pandemic in the U.S. contribute to the 2021-2023 inflation surge through the lens of several different empirical methodologies and establish a null result.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Central bank research, Fiscal policy, Inflation and prices, Monetary policy JEL Code(s): E, E3, E31, E5, E52, E6, E63
• September 24, 2024

  Economic growth during uncertain times

  Remarks Tiff Macklem IIF-CBA Forum Toronto, Ontario

  Governor Tiff Macklem discusses global uncertainty, and the Bank of Canada’s role in mitigating and managing risks to our economy.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Financial stability, Inflation and prices, Interest rates, International topics, Monetary policy and uncertainty, Recent economic and financial developments
• September 20, 2024

  Artificial intelligence, the economy and central banking

  Remarks Tiff Macklem National Bureau of Economic Research, Economics of Artificial Intelligence Conference Toronto, Ontario

  Bank of Canada Governor Tiff Macklem discusses how artificial intelligence could impact the economy, and outlines some of the implications for monetary policy.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Central bank research, Financial stability, Inflation and prices, Labour markets, Monetary policy and uncertainty, Productivity
• September 19, 2024

  Monetary policy decision-making: Behind the scenes

  Remarks Nicolas Vincent Sherbrooke Chamber of Commerce and Industry Sherbrooke, Quebec

  External Deputy Governor Nicolas Vincent gives a behind the scenes look at the rigorous research, analysis and debate that go into every monetary policy decision.

  Content Type(s): Press, Speeches and appearances Topic(s): Central bank research, Credibility, Economic models, Inflation and prices, Inflation targets, Monetary policy, Monetary policy and uncertainty, Monetary policy communications, Monetary policy framework, Monetary policy transmission
• September 19, 2024

  Getting to a monetary policy decision

  Speech summary Nicolas Vincent Sherbrooke Chamber of Commerce and Industry Sherbrooke, Quebec

  External Deputy Governor Nicolas Vincent gives a behind-the-scenes look at how the Bank of Canada’s Governing Council arrives at its monetary policy decisions.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Central bank research, Credibility, Economic models, Inflation and prices, Inflation targets, Monetary policy, Monetary policy and uncertainty, Monetary policy communications, Monetary policy framework, Monetary policy transmission

• Household Food Inflation in Canada

  Staff Working Paper 2024-33 Olena Kostyshyna, Maude Ouellet

  We study food inflation rates for Canadian households during periods of low and high inflation from 2012Q4 to 2023Q4. Households experienced more varied inflation rates during the recent high inflation. Cumulative food inflation has been 2.2 percentage points higher for lower-income households than for highest-income households since the inflation surge.

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices JEL Code(s): E, E2, E21, E3, E30, E31, L, L8, L81
• August 27, 2024

  How high productivity helps fight inflation

  Higher productivity helps keep prices down and wages up. It gives workers more money to spend and increases the value they get when they spend it. And it allows businesses to weather cost increases without having to raise prices. All together, these factors drive economic growth.

  Content Type(s): Publications, The Economy, Plain and Simple Topic(s): Inflation and prices, Productivity

• Price Discounts and Cheapflation During the Post-Pandemic Inflation Surge

  Staff Working Paper 2024-31 Alberto Cavallo, Oleksiy Kryvtsov

  We study how price variation within a store changes with inflation, and whether households exploit these changes to reduce the burden of inflation. We find that price changes from discounts mitigated the inflation burden while cheapflation exacerbated it.

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices, Inflation: costs and benefits, Market structure and pricing JEL Code(s): E, E2, E21, E3, E30, E31, L, L8, L81