Toward 2021

• August 25, 2020

  Perceived inflation and reality: understanding the difference

  Remarks (delivered virtually) Lawrence L. Schembri Canadian Association for Business Economics Kingston, Ontario

  In a virtual address to the Canadian Association for Business Economics, Deputy Governor Lawrence Schembri discusses the difference between how Canadians perceive inflation and the actual measured rate. He explains why that gap may exist and what it could mean for monetary policy and the economy.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Central bank research, Coronavirus disease (COVID-19), Inflation and prices, Inflation targets, Monetary policy

• Strengthening Inflation Targeting: Review and Renewal Processes in Canada and Other Advanced Jurisdictions

  Staff Discussion Paper 2020-7 Robert Amano, Thomas J. Carter, Lawrence L. Schembri

  We summarize the review and renewal process at four central banks (Reserve Bank of New Zealand, Bank of England, Sveriges Riksbank and the US Federal Reserve Bank) and compare them with the process at the Bank of Canada, which has been well-established since 2001.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Central bank research, Inflation targets, Monetary policy framework JEL Code(s): E, E5, E52, E58

• Average is Good Enough: Average-inflation Targeting and the ELB

  Staff Working Paper 2020-31 Robert Amano, Stefano Gnocchi, Sylvain Leduc, Joel Wagner

  The Great Recession and current pandemic have focused attention on the constraint on nominal interest rates from the effective lower bound.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Economic models, Monetary policy framework JEL Code(s): E, E3, E31, E32, E5, E52
• June 22, 2020

  Monetary policy in the context of COVID-19

  Remarks (delivered virtually) Tiff Macklem Canadian clubs and cercles canadiens Ottawa, Ontario

  Governor Tiff Macklem talks about the conduct of monetary policy in the context of COVID-19.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Coronavirus disease (COVID-19), Inflation targets, Monetary policy, Monetary policy framework, Monetary policy implementation

• Multi-Product Pricing: Theory and Evidence from Large Retailers in Israel

  Staff Working Paper 2020-12 Marco Bonomo, Carlos Carvalho, Oleksiy Kryvtsov, Sigal Ribon, Rodolfo Rigato

  Standard theories of price adjustment are based on the problem of a single-product firm, and therefore they may not be well suited to analyze price dynamics in the economy with multiproduct firms.

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices, Market structure and pricing, Monetary policy JEL Code(s): D, D2, D21, D22, E, E3, E31, E5, E52, L, L1, L11

• The Power of Helicopter Money Revisited: A New Keynesian Perspective

  Staff Discussion Paper 2020-1 Thomas J. Carter, Rhys R. Mendes

  We analyze money financing of fiscal transfers (helicopter money) in two simple New Keynesian models: a “textbook” model in which all money is non-interest-bearing (e.g., all money is currency), and a more realistic model with interest-bearing reserves.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Credibility, Economic models, Fiscal policy, Inflation targets, Interest rates, Monetary policy, Monetary policy and uncertainty, Monetary policy framework, Monetary policy transmission JEL Code(s): E, E1, E12, E4, E41, E43, E5, E51, E52, E58, E6, E61, E63

• Managing GDP Tail Risk

  Staff Working Paper 2020-3 Thibaut Duprey, Alexander Ueberfeldt

  Models for macroeconomic forecasts do not usually take into account the risk of a crisis—that is, a sudden large decline in gross domestic product (GDP). However, policy-makers worry about such GDP tail risk because of its large social and economic costs.

  Content Type(s): Staff research, Staff working papers Topic(s): Central bank research, Economic models, Financial stability, Financial system regulation and policies, Interest rates, Monetary policy, Monetary policy framework JEL Code(s): D, D8, E, E4, E44, E5, E52, E58, G, G0, G01

• Social Learning and Monetary Policy at the Effective Lower Bound

  Staff Working Paper 2020-2 Jasmina Arifovic, Alex Grimaud, Isabelle Salle, Gauthier Vermandel

  This research develops a model in which the economy is directly influenced by how pessimistic or optimistic economic agents are about the future. The agents may hold different views and update them as new economic data become available.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Central bank research, Credibility, Economic models, Monetary policy, Monetary policy communications JEL Code(s): C, C8, C82, E, E3, E32, E5, E52
• January 5, 2020

  Monetary Policy Frameworks in a World of Low Interest Rates

  Remarks Carolyn A. Wilkins American Economic Association San Diego, California

  Archived panel discussion hosted by the Bank for International Settlements at the American Economic Association’s 2020 Annual Meeting of Allied Social Science Associations.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Inflation targets, Monetary policy framework

• Monetary Policy and Government Debt Dynamics Without Commitment

  Staff Working Paper 2019-52 Dmitry Matveev

  I show that maturity considerations affect the optimal conduct of monetary and fiscal policy during a period of government debt reduction. I consider a New Keynesian model and study a dynamic game of monetary and fiscal policy authorities without commitment, characterizing the incentives that drive the choice of interest rate.

  Content Type(s): Staff research, Staff working papers Topic(s): Fiscal policy, Monetary policy JEL Code(s): E, E5, E52, E6, E62, E63