Inflation and prices

• February 9, 2022

  Producing growth with less inflation

  Speech summary Tiff Macklem Canadian Chamber of Commerce Canada 360 Summit Ottawa, Ontario

  Governor Tiff Macklem discusses how—by investing in technology and people—businesses can help the economy grow more with less inflation.

  Content Type(s): Press, Speeches and appearances, Speech summaries Research Topic(s): Coronavirus disease (COVID-19), Expectations, Firm dynamics, Inflation and prices, Labour markets, Monetary policy, Productivity, Recent economic and financial developments

• On the Wedge Between the PPI and CPI Inflation Indicators

  Staff Working Paper 2022-5 Shang-Jin Wei, Yinxi Xie

  We find that the CPI and PPI inflation indexes co-moved strongly throughout the late 20th century, but their correlation has fallen substantially since the early 2000s. We offer a structural explanation for this divergence based on the growth of global supply chains since 2000. This finding offers a unique perspective for the future design of optimal monetary policy.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Inflation and prices, Inflation targets, International topics, Monetary policy JEL Code(s): E, E3, E31, E5, E52, E58, F, F1, F11, F12, F4, F41, F6, F62

• Firm Inattention and the Efficacy of Monetary Policy: A Text-Based Approach

  Staff Working Paper 2022-3 Wenting Song, Samuel Stern

  How much attention do firms pay to macroeconomic news? Through a novel text-based measure, two facts emerge. First, attention is polarized. Most firms either never or always pay attention to economic conditions. Second, it is countercyclical. During recessions, more firms pay attention, and firms pay greater attention to macroeconomic news.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles, Inflation and prices, Monetary policy JEL Code(s): D, D8, D83, E, E4, E44, E5, E52
• December 15, 2021

  Building on success

  Speech summary Tiff Macklem Empire Club of Canada Toronto, Ontario

  Governor Tiff Macklem speaks about the Bank of Canada’s monetary policy framework review and the agreement between the Government of Canada and the Bank to renew the 2 percent inflation target.

  Content Type(s): Press, Speeches and appearances, Speech summaries Research Topic(s): Central bank research, Coronavirus disease (COVID-19), Credibility, Expectations, Inflation and prices, Inflation targets, Labour markets, Monetary policy, Monetary policy and uncertainty, Monetary policy communications, Monetary policy framework, Monetary policy implementation, Recent economic and financial developments
• December 15, 2021

  Our monetary policy framework: Continuity, clarity and commitment

  Remarks (delivered virtually) Tiff Macklem Empire Club of Canada Toronto, Ontario

  Governor Tiff Macklem discusses the Bank of Canada’s renewed monetary policy framework. He reviews Canada’s experience with flexible inflation targeting and explains why the Bank and the Government of Canada agreed to renew the 2 percent inflation target.

  Content Type(s): Press, Speeches and appearances, Remarks Research Topic(s): Central bank research, Coronavirus disease (COVID-19), Credibility, Expectations, Inflation and prices, Inflation targets, Labour markets, Monetary policy, Monetary policy and uncertainty, Monetary policy communications, Monetary policy framework, Monetary policy implementation, Recent economic and financial developments
• December 13, 2021

  Monetary Policy Framework Renewal (December 2021)

  Commentary and technical data relating to the 2021 renewal.

  Content Type(s): Background materials Research Topic(s): Inflation and prices, Monetary policy
• December 9, 2021

  Keeping our eyes on inflation

  Speech summary Toni Gravelle Surrey Board of Trade Surrey, British Columbia

  Deputy Governor Toni Gravelle talks about the Bank of Canada’s decision yesterday to leave the policy rate unchanged. He explains the link between supply bottlenecks and high inflation and why the Bank thinks both will ease over time.

  Content Type(s): Press, Speeches and appearances, Speech summaries Research Topic(s): Coronavirus disease (COVID-19), Domestic demand and components, Inflation and prices, Inflation targets, Interest rates, Monetary policy and uncertainty, Recent economic and financial developments, Service sector
• December 9, 2021

  Economic progress report: A recovery unlike any other

  Remarks (delivered virtually) Toni Gravelle Surrey Board of Trade Surrey, British Columbia

  Deputy Governor Toni Gravelle provides an economic update and discusses the relationship between supply bottlenecks and inflation.

  Content Type(s): Press, Speeches and appearances, Remarks Research Topic(s): Coronavirus disease (COVID-19), Domestic demand and components, Inflation and prices, Inflation targets, Interest rates, Monetary policy and uncertainty, Recent economic and financial developments, Service sector

• What Can Stockouts Tell Us About Inflation? Evidence from Online Micro Data

  Staff Working Paper 2021-52 Alberto Cavallo, Oleksiy Kryvtsov

  Did supply disruptions and cost pressures play a role in rising inflation in 2020 during the COVID-19 pandemic? Using data collected from websites of large retailers in multiple sectors and countries, we show that shortages may indicate transitory inflationary pressures.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Coronavirus disease (COVID-19), Inflation and prices JEL Code(s): D, D2, D22, E, E3, E31, E37

• More Money for Some: The Redistributive Effects of Open Market Operations

  Staff Working Paper 2021-46 Christian Bustamante

  I use a search-theoretic model of money to study how open market operations affect the conduct of monetary policy and what this means for households along the wealth distribution. In the model, households vary in the size and composition of their portfolios, which in turn implies that they may be unevenly affected by open market operations.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Inflation and prices, Monetary policy, Monetary policy implementation, Monetary policy transmission JEL Code(s): E, E2, E21, E3, E32, E5, E52