Monetary policy framework

• August 21, 2002

  Monetary Policy and Uncertainty

  Bank of Canada Review - Summer 2002 Paul Jenkins, David Longworth

  Central banks must cope with considerable uncertainty about what will happen in the economy when formulating monetary policy. This article describes the different types of uncertainty that arise and looks at examples of uncertainty that the Bank has recently encountered. It then reviews the strategies employed by the Bank to deal with this problem. The other articles in this special issue focus on three of these major strategies.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Monetary policy and uncertainty, Monetary policy framework
• August 20, 2002

  Information and Analysis for Monetary Policy: Coming to a Decision

  Bank of Canada Review - Summer 2002 Tiff Macklem

  This article outlines one of the Bank's key approaches to dealing with the uncertainty that surrounds decisions on monetary policy: the consideration of a wide range of information from a variety of sources. More specifically, it describes the information and analysis that the monetary policy decision-makers—the Governing Council of the Bank of Canada—receive in the two or three weeks leading up to a decision on the setting of the policy rate—the target overnight interest rate. The article also describes how the Governing Council reaches this decision.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Monetary and financial indicators, Monetary policy framework, Monetary policy implementation