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longer-term market interest rates by taking into account the relationship between interest rates, inflation, and unemployment … rates. By using vector autoregressive models of monthly interest rates, month-over-month inflation, and unemployment rates … lowering Canadian interest rates relative to what their historical relationship with inflation and unemployment rates would …
Persistent link: https://www.econbiz.de/10003996812
Inflation expectations play a vital role in determining inflation. Central bankers need to understand their intricacies … and the information they can reveal. We look at the consistency of consumers' answers to questions on inflation … among individuals and overall. We also compare the inflation forecasts of consumers with consistent responses with those of …
Persistent link: https://www.econbiz.de/10014251274
Persistent link: https://www.econbiz.de/10014577895
authors outline the main elements of the model, which include: cost and risk measures, inflation-linked debt, optimization …
Persistent link: https://www.econbiz.de/10009008000
The authors present a detailed discussion of the Bank of Canadas' framework for the implementation of monetary policy. As background, they provide a brief overview of the financial system in Canada, including a discussion of the financial services industry and the money market. Key features of...
Persistent link: https://www.econbiz.de/10003727268
To investigate the extent to which the transparency of the Bank of Canada’s monetary policy has improved, the authors examine empirically – over the period 30 October 2000 to 31 May 2007 – the reaction of Canadian financial markets to official Bank communications, and in particular their...
Persistent link: https://www.econbiz.de/10008696652
Relevant literature on asset-liability management (ALM) is reviewed and different ALM approaches are discussed that may be of interest to the Bank of Canada for the purpose of modelling the Exchange Fund Account (EFA). The author describes the general idea behind ALM, its pros and cons, risk...
Persistent link: https://www.econbiz.de/10003996809
The recovery in private business investment globally remains extremely weak more than seven years after the financial crisis. This paper contributes to the ongoing policy debate on the factors behind this weakness by analyzing the role of growth prospects and uncertainty in explaining...
Persistent link: https://www.econbiz.de/10011422052
their inflation targets in a timely manner and exacerbating financial stability risks. Recent research suggests that central …
Persistent link: https://www.econbiz.de/10011515917
Digital currencies have attracted strong interest in recent years and have the potential to become widely adopted for use in making payments. Public authorities and central banks around the world are closely monitoring developments in digital currencies and studying their implications for the...
Persistent link: https://www.econbiz.de/10011565226