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Inflation, Nominal Portfolios, and Wealth Redistribution in Canada

Meh, Césaire; Terajima, Yaz - Bank of Canada - 2008

There is currently a policy debate on potential refinements to monetary policy regimes in countries with low and stable inflation such as the U.S. and Canada. For example, in Canada, a systematic review of the current inflation targeting framework is underway. An issue that has generally...

Persistent link: https://www.econbiz.de/10005536850

Some Explorations, Using Canadian Data, of the S-Variable in Akerlof, Dickens, and Perry (1996)

Seamus, Hogan; Pichette, Lise - Bank of Canada - 2000

A number of authors have suggested that economies face a long-run inflation-unemployment trade-off due to downward nominal-wage rigidity. This theory has implications for the nature of the short-run Phillips curve when wage inflation is low. Akerlof, Dickens and Perry have developed an empirical...

Persistent link: https://www.econbiz.de/10005536881

The Welfare Implications of Fiscal Dominance

Resende, Carlos De; Rebei, Nooman - Bank of Canada - 2008

This paper studies the interdependence between fiscal and monetary policy in a DSGE model with sticky prices and non-zero trend inflation. We characterize the fiscal and monetary policies by a rule whereby a given fraction k of the government debt must be backed by the discounted value of...

Persistent link: https://www.econbiz.de/10005536893

ToTEM II: An Updated Version of the Bank of Canada’s Quarterly Projection Model

Dorich, José; Johnston, Michael K.; Mendes, Rhys R.; … - Bank of Canada - 2013

This report provides a detailed technical description of an updated version of the Terms-of-Trade Economic Model (ToTEM II), which replaced ToTEM (Murchison and Rennison 2006) in June 2011 as the Bank of Canada’s quarterly projection model for Canada. ToTEM has been improved along a number of...

Persistent link: https://www.econbiz.de/10010849975

The Neutral Rate of Interest in Canada

Mendes, Rhys R. - Bank of Canada - 2014

A measure of the neutral policy interest rate can be used to gauge the stance of monetary policy. We define the neutral rate as the real policy rate consistent with output at its potential level and inflation equal to target after the effects of all cyclical shocks have dissipated. This is a...

Persistent link: https://www.econbiz.de/10010960403

Constraints on the Conduct of Canadian Monetary Policy in 1990s: Dealing with Uncertainty in Financial Markets.

Clinton, K.; Zelmer, M. - Bank of Canada - 1997

This report presents a simple theorretical model that shows the quantitative impact of the increased interest rate premiums on economic performance. Some evidence is presented that suggests high Canadian interest rate premiums were an important factor explaining the general weakness of economic...

Persistent link: https://www.econbiz.de/10005808257

Emerging Asia's Impact on Food and Oil Prices: A Model-Based Analysis

Lalonde, René; Maier, Philipp; Muir, Dirk - Bank of Canada - 2009

The authors explore the usefulness of macroeconomic models in analyzing global economic developments by examining movements in commodity prices between July 2007 and July 2008. They use the Bank of Canada's version of the Global Economy Model and investigate the longerterm outlook for commodity...

Persistent link: https://www.econbiz.de/10005808267

Price-Level versus Inflation Targeting with Financial Market Imperfections

Covas, Francisco; Zhang, Yahong - Bank of Canada - 2008

This paper compares price-level-path targeting (PT) with inflation targeting (IT) in a sticky-price, dynamic, general equilibrium model augmented with imperfections in both the debt and equity markets. Using a Bayesian approach, we estimate this model for the Canadian economy. We show that the...

Persistent link: https://www.econbiz.de/10005808286

The Exchange Rate and Canadian Inflation Targeting

Ragan, Christopher - Bank of Canada - 2005

The author provides a non-technical explanation of the role played by the exchange rate in Canada's inflation-targeting monetary policy. He reviews the motivation for inflation targeting and describes the monetary transmission mechanism. Though the exchange rate is an integral component of the...

Persistent link: https://www.econbiz.de/10005808322

Money Demand and Economic Uncertainty

Atta-Mensah, Joseph - Bank of Canada - 2004

The author examines the impact of economic uncertainty on the demand for money. Using a general-equilibrium theory, he … macroeconomic uncertainty, the demand for money is a function of real income and interest rates, and an index of economic … uncertainty. The author then uses the Johansen procedure of cointegration to estimate the long-run stationary relationships …

Persistent link: https://www.econbiz.de/10005808351