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eBook Monetary rules when economic behaviour changes (Bank of Canada working paper) download
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Author: Robert A Amano
ISBN: 0662277953
Pages 46 pages
Publisher Bank of Canada (1999)
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Rating: 4.6
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eBook Monetary rules when economic behaviour changes (Bank of Canada working paper) download

by Robert A Amano


This paper examines the implications of changes in economic behaviour for simple inflation-forecast–based monetary rules of the type currently used at two inflation-targeting central banks.

This paper examines the implications of changes in economic behaviour for simple inflation-forecast–based monetary rules of the type currently used at two inflation-targeting central banks. Analysis is conducted using stochastic simulations of a model of the Canadian economy. Two questions are posed: First, what are the implications of these types of changes in economic behaviour for the stochastic properties of the economy? Second, how are efficient inflation-forecast–based rules affected by these changes in behaviour? Perhaps the most interesting results are with respect to credibility.

The Bank of Canada's monetary policy framework is such a foundation. In a moment, I'll outline how this framework works to mitigate the effects of shocks, facilitate the adjustment process, and promote sound economic performance. But first, let me discuss some of the major global forces that have been affecting the Canadian economy. The Bank aims to achieve this balance by raising interest rates when aggregate demand pushes the economy against the limits of its capacity and, in a symmetric fashion, by lowering interest rates when demand weakens. Inflation control facilitates adjustment to economic developments in two ways.

The Credibility of Monetary Policy: A Survey of the Literature with Some Simple Applications to Canada.

oceedings{Amano1994BankOC, title {Bank of Canada Banque du Canada Working Paper 998, Document de travail 998 Monetary Rules When Economic Behaviour Changes}, author {Robert A. Amano and Don Coletti and Tiff Macklem}, year {1994} }. Robert A. Amano, Don Coletti, Tiff Macklem. The Credibility of Monetary Policy: A Survey of the Literature with Some Simple Applications to Canada.

This paper examines the implications of changes in economic behaviour for simple inflation-forecast–based monetary rules of. .Robert Amano & Donald Coletti & Tiff Macklem, 1999. Monetary Rules When Economic Behaviour Changes," Staff Working Papers 99-8, Bank of Canada. Handle: RePEc:bca:bocawp:99-8.

Optimal price-level drift under commitment in the canonical New Keynesian model. This result has important implications for monetary policy, including the design of the optimal loss function for the central bank if it cannot commit to its future policies.

Monetary rules when economic behaviour changes. RA Amano, D Coletti, RT Macklem. R Amano, J Engle-Warnick, M Shukayev. Bank of Canada working paper, 2011. Bank of Canada, 1999. The macroeconomic effects of nonzero trend inflation. R Amano, S Ambler, N Rebei. Inflation persistence and monetary policy: A simple result. Economics Letters 94 (1), 26-31, 2007.

Three types of changes in economic behaviour are considered, changes . The Bank of Canada adopted a new measure of core inflation when the inflation targets were renewed in 2001 (Macklem, 2001).

Three types of changes in economic behaviour are considered, changes that are motivated by developments in monetary and fiscal policy in the 1990s: changes in . The new CPI measure excludes the eight most volatile components from the basket and also adjusts the remaining components for the effect of changes in indirect taxes. Reference: To Reduce Inflation: New Application of Old Theories. A New Measure of Core Inflation.

BIS Working Papers are written by members of the Monetary and Economic Department of the Bank for International Settlements, and from time to time by other economists, and are published by the Bank.

Neutrality of money vs. money illusion as to a change in the money supply . Mundell, 1971. Monetary Theory: Interest, Inflation and Growth in the World Economy. money illusion as to a change in the money supply, price level, or inflation on output. Tests, testability, and implications of s theory as to changes in output or inflation from monetary policy. Monetary implications of imperfect and asymmetric information and fraudulent finance. Game theory as a modeling paradigm for monetary and financial institutions. During the eighteenth century, the concept of bank notes became more common in Europe  .

The Bank of Canada Act places responsibility for the conduct of monetary . Money targeting works best when. the demand for money is stable and predictable.

The Bank of Canada Act places responsibility for the conduct of monetary policy on the Bank's Governing Council. Which of the following benefits flow from the application of an inflation. When the Bank of Canada fights inflation by implementing an open market operation, the supply of reserves curve shifts and the supply of money curve shifts . leftward; leftward. Which of the following statements best makes the case for using rules, rather than judgement, to set monetary policy? With rules, inflation is easier to forecast.