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...

Ce papier se propose d’analyse la dynamique de la politique monétaire en République démocratique du Congo (RDC), en adoptant une approche de modélisation par l’équilibre général dynamique stochastique (DSGE). Le modèle DSGE construit à cet effet considère trois relations...

We show that growth and unemployment forecasts submitted by individual FOMC members do not exhibit herding behavior, while the inflation forecasts show strong evidence of anti-herding. Interestingly, anti-herding is more important for non-voting members than for voters.

This paper examines the effectiveness of monetary policy in Kenya based on policy simulations from a structural macroeconometric model. The analysis is conducted using the policy rate, i.e. the central bank rate (CBR) and the cash reserve ratio (CRR) with respect to the interest rate and bank...

Using a macroeconometric model we simulate different scenarios for alternative wage and monetary policies and their effects on macroeconomic performance in Germany. First, ex post scenarios for the period from 1991 until 2000 are simulated, and then ex ante scenarios for the period from 2001...

In this paper, we use panel data to test whether Federal Open Market Committee (FOMC) board members’ forecasts are rational. Rationality is rejected in the sense that forecasts by members are heavily dependent on previous own forecasts and last consensus made in FOMC. Furthermore, we reveal...

In many countries, wage changes tend to be clustered in the beginning of the year, with wages being set for fixed durations of typically one year. This has been, in particular, documented in recent years for European countries using microeconomic data. Motivated by this evidence we build a model...

This paper presents the theoretical foundations and dynamic properties of a dynamic stochastic general equilibrium (DSGE) model designed for quantitative policy analysis and counterfactual exercises. The approach of the paper can be summarized as follows. First, we present the model’s...

The role of house prices in the mechanism of monetary policy transmission has been a live topic that attracts considerable attention among policy makers and academic researchers in recent years. In this paper, we examine the role of house prices in the unconventional monetary policy transmission...

We study the impact that macroeconomic news has on equity prices. While the literature has already widely documented the effects of macroeconomic announcements on asset prices, as well as their asymmetric impact during good and bad times, we focus on the reaction to news when the description of...