Inflation and prices

• February 9, 2017

  Getting to the Core of Inflation

  Remarks Lawrence L. Schembri Department of Economics, Western University London, Ontario

  Deputy Governor Lawrence Schembri discusses the uses and measures of core inflation in the conduct of monetary policy.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Business fluctuations and cycles, Central bank research, Inflation and prices, Inflation targets, Monetary policy, Recent economic and financial developments

• Price-Level Dispersion versus Inflation-Rate Dispersion: Evidence from Three Countries

  Staff Working Paper 2017-3 David Fielding, Christopher Hajzler, James (Jim) C. MacGee

  Inflation can affect both the dispersion of commodity-specific price levels across locations (relative price variability, RPV) and the dispersion of inflation rates (relative inflation variability, RIV). Some menu-cost models and models of consumer search suggest that the RIV-inflation relationship could differ from the RPV-inflation relationship.

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices JEL Code(s): E, E3, E31, E5, E50
• January 18, 2017

  Monetary Policy Report Press Conference Opening Statement

  Opening statement Stephen S. Poloz, Carolyn A. Wilkins Ottawa, Ontario

  Governor Stephen S. Poloz discusses key issues involved in the Governing Council’s deliberations about the policy rate decision and the MPR.

  Content Type(s): Press, Speeches and appearances, Opening statements Topic(s): Fiscal policy, Inflation and prices, Monetary policy, Monetary policy and uncertainty, Potential output, Recent economic and financial developments

• Comparing Forward Guidance and Neo-Fisherianism as Strategies for Escaping Liquidity Traps

  Staff Analytical Note 2016-16 Robert Amano, Thomas J. Carter, Rhys R. Mendes

  What path should policy-makers select for the nominal rate when faced with a liquidity trap during which the effective lower bound binds?

  Content Type(s): Staff research, Staff analytical notes Topic(s): Central bank research, Economic models, Inflation and prices, Interest rates, Monetary policy framework, Monetary policy transmission JEL Code(s): E, E4, E5
• October 24, 2016

  Renewal of the Inflation-Control Target (October 2016)

  Commentary and technical data relating to the 2016 target renewal.

  Content Type(s): Background materials Topic(s): Inflation and prices, Monetary policy
• October 19, 2016

  Monetary Policy Report Press Conference Opening Statement

  Opening statement Stephen S. Poloz, Carolyn A. Wilkins Ottawa, Ontario

  Governor Stephen S. Poloz discusses key issues involved in the Governing Council’s deliberations about the policy rate decision and the MPR.

  Content Type(s): Press, Speeches and appearances, Opening statements Topic(s): Housing, Inflation and prices, Interest rates, Monetary policy, Monetary policy and uncertainty, Recent economic and financial developments
• October 6, 2016

  Economic Trends and Monetary Policy

  Remarks Carolyn A. Wilkins Université du Québec à Trois-Rivières Trois-Rivières, Quebec

  Senior Deputy Governor Carolyn Wilkins talks about the major trends of the Canadian economy and how they affect monetary policy.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Business fluctuations and cycles, Domestic demand and components, Inflation and prices, Monetary policy, Recent economic and financial developments, Regional economic developments

• On What States Do Prices Depend? Answers from Ecuador

  Staff Working Paper 2016-43 Craig Benedict, Mario J. Crucini, Anthony Landry

  In this paper, we argue that differences in the cost structures across sectors play an important role in firms’ decisions to adjust their prices. We develop a menu-cost model of pricing in which retail firms intermediate trade between producers and consumers.

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices, Monetary policy transmission JEL Code(s): E, E3, E5, F, F3, F33

• A Primer on Neo-Fisherian Economics

  Staff Analytical Note 2016-14 Robert Amano, Thomas J. Carter, Rhys R. Mendes

  Conventional models imply that central banks aiming to raise inflation should lower nominal rates and thus stimulate aggregate demand. However, several economists have recently challenged this conventional wisdom in favour of an alternative “neo-Fisherian’’ view under which higher nominal rates might in fact lead to higher inflation.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Central bank research, Economic models, Inflation and prices, Interest rates, Monetary policy framework, Monetary policy transmission JEL Code(s): E, E4, E5

• Output Comovement and Inflation Dynamics in a Two-Sector Model with Durable Goods: The Role of Sticky Information and Heterogeneous Factor Markets

  Staff Working Paper 2016-36 Tomiyuki Kitamura, Tamon Takamura

  In a simple two-sector New Keynesian model, sticky prices generate a counterfactual negative comovement between the output of durable and nondurable goods following a monetary policy shock. We show that heterogeneous factor markets allow any combination of strictly positive price stickiness to generate positive output comovement.

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices, Monetary policy transmission JEL Code(s): E, E3, E31, E32, E5, E52