Inflation and prices

• Bouncing Back: How Mothballing Curbs Prices

  Staff Working Paper 2024-51 Thibaut Duprey, Artur Kotlicki, Daniel E. Rigobon, Philip Schnattinger

  We investigate the macroeconomic impacts of mothballed businesses—those that closed temporarily—on sectoral equilibrium prices after a negative demand shock. Our results suggest that pandemic fiscal support for temporary closures may have eased inflationary pressures.

  Content Type(s): Staff research, Staff working papers Topic(s): Central bank research, Firm dynamics, Fiscal policy, Inflation and prices JEL Code(s): C, C5, C55, C8, C81, D, D2, D22, E, E3, E32

• Consumer Search, Productivity Heterogeneity, Prices, Markups, and Pass-through: Theory and Estimation

  Staff Working Paper 2024-50 Alex Chernoff, Allen Head, Beverly Lapham

  We develop and estimate a search model in which identical consumers trade with price-setting firms that differ in productivity. We use the estimated model to characterize the qualitative and quantitative differences in prices and markups across firms. We explore how individual firms respond to changes in cost and demand and how they pass these through to their prices and markup.

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices, Service sector JEL Code(s): E, E3, E31, L, L1, L16
• December 16, 2024

  Lessons for the future

  Speech summary Tiff Macklem Greater Vancouver Board of Trade Vancouver, British Columbia

  In his year-end remarks, Governor Tiff Macklem discusses what the Bank of Canada learned from the pandemic experience and outlines how the Bank is preparing for a more uncertain future.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Coronavirus disease (COVID-19), Economic models, Expectations, Inflation and prices, Inflation targets, International topics, Monetary policy, Monetary policy communications, Monetary policy framework
• December 16, 2024

  Delivering price stability: Learning from the past, preparing for the future

  Remarks Tiff Macklem Greater Vancouver Board of Trade Vancouver, British Columbia

  Governor Tiff Macklem reflects on the lessons learned from the pandemic and its aftermath and outlines how the Bank is preparing for the challenges of the future.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Coronavirus disease (COVID-19), Economic models, Expectations, Inflation and prices, Inflation targets, International topics, Monetary policy, Monetary policy communications, Monetary policy framework