The Bank of Canada must take account of the international environment, where inflation targeting has become widespread, as it considers Canada’s future options. This study examines international experience with monetary policy over the past decade and the consequences of the worldwide spread...

Changes in interest rates, inflation, and exchange rates are the main components of macroeconomic risks (financial risks) in projects evaluation. However, the conduct of monetary policy as well as its impact on the economic environment is seldom considered as an important component of...

The introduction of inflation targets in Canada in 1991 clarified the objectives of monetary policy. One of the objectives of the new policy was to ensure that the public would henceforth be able to more easily assess monetary policy performance based on the Bank of Canada's record at achieving...

This paper considers whether the adoption of inflation targets for Hungary, an emerging market economy, is a desirable option. We consider the qualitative and quantitative pre-conditions required for the successful adoption of inflation control objectives. Although it is found that the National...

Stylized facts suggest that the monetary policies in the US versus dollar bloc countries that formally target inflation (Australia, Canada, and New Zealand) place somewhat different emphasis on inflation than on other factors (e.g., output gap). We use parameter estimated from versions of models...

This paper deals with two interrelated issues. First, how has the international experience with monetary policy changed over the past decade or so? The present Commentary considers the consequences of the spread of inflation control regimes worldwide in shaping where Canada goes from here after...

Transparent communication is a prerequisite for delivering an effective monetary policy. In this paper, we examine over 3000 speeches from central bankers to investigate the topics euro area national banks and the ECB most frequently talk about. Text-based ideal point analysis enables us to...

One way of evaluating how well monetary authorities perform is to provide the public with a regular and independent second opinion. The European Central Bank (ECB) and the Bank of England (BoE) are shadowed by professional and academic economists who provide a separate policy rate recommendation...

We examine policy rate recommendations of the Bank of Canada’s Governing Council (GC) and its shadow, the C.D. Howe Institute’s Monetary Policy Council (MPC). Individual recommendations of the MPC are observed but not those of the GC. Differences in the two committee’s recommendations are...

This paper examines the policy rate recommendations of the Bank of Canada’s Governing Council (GC) and the C.D. Howe Institute’s (CDHI) Monetary Policy Council (MPC) since 2003. We find, first, that differences in the median recommendations between the MPC and the GC are persistent but small...