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The doug purvis memorial lecture : monetary/fiscal policy mix and financial stability : the medium term is still the message

Poloz, Stephen S. - 2016

Financial stability risks have become topical in the wake of the global financial crisis and the subsequent extended period of very low interest rates. This paper investigates the significance of the mix of monetary and fiscal policies for financial stability through counterfactual simulations...

Persistent link: https://www.econbiz.de/10011483812

What explains month-end funding pressure in Canada?

Sutherland, Christopher S. - 2017

the overnight repo rate and Bank of Canada liquidity provision tend to rise in these windows. This paper proposes three … frictions. Market participants place a premium on liquidity around month-end periods because of the confluence of a generalized … liquidity preference, heightened month-end forecast uncertainty, and resultant search frictions in the repo market. Second, this …

Persistent link: https://www.econbiz.de/10011661122

The Bank of Canada's "horse race" of alternative monetary policy frameworks: some interim results from model simulations

Dorich, José; Mendes, Rhys; Zhang, Yang - 2021

Since 1991, the Bank of Canada has had an inflation‐targeting (IT) framework established by a joint agreement between the Bank and the Government of Canada. The framework is reviewed every five years as part of the process for renewing the inflation‐control agreement. This discussion paper...

Persistent link: https://www.econbiz.de/10012613645

Strengthening inflation targeting: review and renewal processes in Canada and other advanced jurisdictions

Amano, Robert A.; Carter, Thomas J.; Schembri, Lawrence - 2020

A growing number of advanced economies with monetary policy frameworks that involve inflation targeting have adopted formal processes of review and renewal. These allow policy-makers and other stakeholders to assess the current framework's performance to date, explore the merits of potential...

Persistent link: https://www.econbiz.de/10012257021

Power of many : assessing the economic impact of the global fiscal stimulus

De Resende, Carlos; Lalonde, René; Snudden, Stephen - 2010

The Bank of Canada Global Economy Model (BoC-GEM) is used to examine the effect of various types of discretionary fiscal policies on different regions of the globe. The BoC-GEM is a microfounded dynamic stochastic general-equilibrium global model with six regions, multiple sectors, and...

Persistent link: https://www.econbiz.de/10003933262

The 2021-22 surge in inflation

Kryvtsov, Oleksiy; MacGee, James; Uzeda, Luis - 2023

The rise in inflation in 2021-22 sparked a growing literature and debate over the causes of the surge as well as the near- and medium-term path for inflation. This review offers three key messages. First, the exceptional nature of shocks resulting from the COVID-19 pandemic and geopolitical...

Persistent link: https://www.econbiz.de/10013548788

Interaction of macroprudential and monetary policies : practice ahead of theory

Duprey, Thibaut; Terajima, Yaz; Yang, Jing - 2024

This paper examines how monetary and macroprudential policies interact and possibly complement each other in achieving their respective price and financial stability objectives. We first review the Canadian experience of housing market cycles and highlight the need to coordinate the two sets of...

Persistent link: https://www.econbiz.de/10015163673

A horse race of alternative monetary policy regimes under bounded rationality

Wagner, Joel; Schlanger, Tudor; Zhang, Yang - 2022

We introduce bounded rationality, along the lines of Gabaix (2020), in a canonical New Keynesian model calibrated to match Canadian macroeconomic data since Canada's adoption of inflation targeting. We use the model to provide a quantitative assessment of the macroeconomic impact of flexible...

Persistent link: https://www.econbiz.de/10013161512

A comprehensive evaluation of measures of core inflation for Canada

Khan, Mikael; Morel, Louis; Sabourin, Patrick - 2015

This paper evaluates the usefulness of various measures of core inflation for the conduct of monetary policy. Traditional exclusion-based measures of core inflation are found to perform relatively poorly across a range of evaluation criteria, in part due to their inability to filter...

Persistent link: https://www.econbiz.de/10011373736

The optimal level of the inflation target : a selective review of the literature and outstanding issues

Kryvtsov, Oleksiy; Mendes, Rhys R. - 2015

Bank of Canada research done prior to the most recent renewal of the inflation-control agreement in 2011 concluded that the benefits associated with a target below 2 per cent were insufficient to justify the increased risk of being constrained by the zero lower bound (ZLB) on nominal interest...

Persistent link: https://www.econbiz.de/10011341760