Canada's Monetary Policy Regime After 2011
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BIS Working Papers No 136 the Price Level, Relative Prices and Economic Stability: Aspects of the Interwar Debate by David Laidler* Monetary and Economic Department
BIS Working Papers No 136 The price level, relative prices and economic stability: aspects of the interwar debate by David Laidler* Monetary and Economic Department September 2003 * University of Western Ontario Abstract Recent financial instability has called into question the sufficiency of low inflation as a goal for monetary policy. This paper discusses interwar literature bearing on this question. It begins with theories of the cycle based on the quantity theory, and their policy prescription of price stability supported by lender of last resort activities in the event of crises, arguing that their neglect of fluctuations in investment was a weakness. Other approaches are then taken up, particularly Austrian theory, which stressed the banking system’s capacity to generate relative price distortions and forced saving. This theory was discredited by its association with nihilistic policy prescriptions during the Great Depression. Nevertheless, its core insights were worthwhile, and also played an important part in Robertson’s more eclectic account of the cycle. The latter, however, yielded activist policy prescriptions of a sort that were discredited in the postwar period. Whether these now need re-examination, or whether a low-inflation regime, in which the authorities stand ready to resort to vigorous monetary expansion in the aftermath of asset market problems, is adequate to maintain economic stability is still an open question. 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. The views expressed in them are those of their authors and not necessarily the views of the BIS. -
From Next Best to World Class: the People and Events That Have
FROM NEXT BEST TO WORLD CLASS The People and Events That Have Shaped the Canada Deposit Insurance Corporation 1967–2017 C. Ian Kyer FROM NEXT BEST TO WORLD CLASS CDIC—Next Best to World Class.indb 1 02/10/2017 3:08:10 PM Other Historical Books by This Author A Thirty Years’ War: The Failed Public Private Partnership that Spurred the Creation of the Toronto Transit Commission, 1891–1921 (Osgoode Society and Irwin Law, Toronto, 2015) Lawyers, Families, and Businesses: A Social History of a Bay Street Law Firm, Faskens 1863–1963 (Osgoode Society and Irwin Law, Toronto, 2013) Damaging Winds: Rumours That Salieri Murdered Mozart Swirl in the Vienna of Beethoven and Schubert (historical novel published as an ebook through the National Arts Centre and the Canadian Opera Company, 2013) The Fiercest Debate: Cecil Wright, the Benchers, and Legal Education in Ontario, 1923–1957 (Osgoode Society and University of Toronto Press, Toronto, 1987) with Jerome Bickenbach CDIC—Next Best to World Class.indb 2 02/10/2017 3:08:10 PM FROM NEXT BEST TO WORLD CLASS The People and Events That Have Shaped the Canada Deposit Insurance Corporation 1967–2017 C. Ian Kyer CDIC—Next Best to World Class.indb 3 02/10/2017 3:08:10 PM Next Best to World Class: The People and Events That Have Shaped the Canada Deposit Insurance Corporation, 1967–2017 © Canada Deposit Insurance Corporation (CDIC), 2017 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior written permission of the publisher. -
Annual Report 2003 La De Annuel Rapport Rapport Annueldela 2003 Banque Ducanada
BANK OF CANADA OF CANADA BANK ANNUAL REPORT 2003 ANNUAL REPORT BANK OF CANADA ANNUAL REPORT 2003 2003 2003 BANQUE DU CANADA DU CANADA BANQUE BANQUE DU CANADA DU BANQUE LA DE ANNUEL RAPPORT RAPPORT ANNUEL DE LA RAPPORT Bank of Canada — 234 Wellington Street, Ottawa, Ontario K1A 0G9 5211 — CN ISSN 0067-3587 ISSN CN — 5211 0G9 K1A Ontario Ottawa, Street, Wellington 234 — Canada of Bank his many volunteer activities. His warm wit and generous spirit will be sorely missed. sorely be will spirit generous and wit warm His activities. volunteer many his Gerry Bouey and neither will his community to which he contributed to the very end through end very the to contributed he which to community his will neither and Bouey Gerry Those who worked with him over the course of his long and remarkable career will never forget never will career remarkable and long his of course the over him with worked who Those Achievement Award. In 1987, he was made a Companion of the Order of Canada. of Order the of Companion a made was he 1987, In Award. Achievement of Laws from Queen’s University. In 1983, he was presented with the Outstanding Public Service Public Outstanding the with presented was he 1983, In University. Queen’s from Laws of In 1981, he was made an Officer of the Order of Canada and also received an Honorary Doctor Honorary an received also and Canada of Order the of Officer an made was he 1981, In economic development and to the Bank’s growing international reputation. -
Tiff Macklem: Mitigating Systemic Risk and the Role of Central Banks
Tiff Macklem: Mitigating systemic risk and the role of central banks Remarks by Mr Tiff Macklem, Senior Deputy Governor of the Bank of Canada, to “Conférence de Montréal”, Montreal, Quebec, 6 June 2011. * * * Introduction It’s a pleasure to be here today and to be part of this panel. My assignment is to talk about the role of central banks with respect to systemic risk–in ten minutes. Needless to say, this is a tall order, made all the more challenging by the fact that systemic risk requires looking across the entire financial system and considering the full sweep of policy instruments and how they interact. But I will do my best to break it down into the essential points and look forward to the panel discussion and questions afterwards. There are three points that I want to make. First, we have made considerable progress in reforming the core of the global financial system. Basel III represents a very significant strengthening of the global rules. The reform agenda is now turning to the important issue of shadow banking–or market-based financing, as it is more aptly called–and the appropriate perimeter of supervision and regulation. Completing this reform agenda is critical to strengthening the resilience of the financial system. Second, central banks have a pivotal role to play in mitigating systemic risk by: identifying system-wide vulnerabilities and using their panoramic view of the financial system to connect the dots; supporting financial stability by providing emergency liquidity assistance to solvent, but illiquid institutions; and protecting the global financial system from the failure of one institution by promoting robust core financial infrastructure and overseeing systemically important clearing and settlement systems, including central counterparties for over-the-counter (OTC) derivatives. -
Dalrev Vol44 Iss2 Pp165 171.Pdf (3.958Mb)
H. H. F. Binhammer CANADA'S MONEY MUDDLE IN RETROSPECT QUESTIONS CONCERNING THE CONTROL OF MONEY are as old as the use of money as a measure and store of value and a medium of exchange. Relevant to developments in the post~war period in Canada is the controversy of the mid-nineteenth century between the so-called Banking School and the Currency School. The Banking School maintained that control over the supply of money should be left in the hands of private commercial banks. The Currency School, on the other hand, among other things, maintained that control over the money supply should be vested directly or indirectly in the hands of government. Settlement in favour of the Currency School led to the establishment of central banks, mainly under the sponsorship of govern ments. These banks were to provide an umbrella over the private commercial banks. In Canada, interference with the money supply by a central authority started with the Finance Act of 1914. This was followed by the establishment of the Bank of Canada in 1935, first with limited government participation and later with com~ plete government control. The degree to which the central bank should assert its influence over the economy and in particular over the private commercial banks was not questioned until the fifties. During the thirties, the war, and the immediate post-war period, the central bank, on the whole, accommodated the activities of the chartered banks without question. That is to say, the central bank, in a more or less routine fashion, assisted the chartered banks to meet the demands of business. -
Is Monetary Financing Inflationary? a Case Study of the Canadian Economy, 1935–75
Working Paper No. 848 Is Monetary Financing Inflationary? A Case Study of the Canadian Economy, 1935–75 by Josh Ryan-Collins* Associate Director Economy and Finance Program The New Economics Foundation October 2015 * Visiting Fellow, University of Southampton, Centre for Banking, Finance and Sustainable Development, Southampton Business School, Building 2, Southampton SO17 1TR, [email protected]; Associate Director, Economy and Finance Programme, The New Economics Foundation (NEF), 10 Salamanca Place, London SE1 7HB, [email protected]. The Levy Economics Institute Working Paper Collection presents research in progress by Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals. Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad. Levy Economics Institute P.O. Box 5000 Annandale-on-Hudson, NY 12504-5000 http://www.levyinstitute.org Copyright © Levy Economics Institute 2015 All rights reserved ISSN 1547-366X ABSTRACT Historically high levels of private and public debt coupled with already very low short-term interest rates appear to limit the options for stimulative monetary policy in many advanced economies today. One option that has not yet been considered is monetary financing by central banks to boost demand and/or relieve debt burdens. We find little empirical evidence to support the standard objection to such policies: that they will lead to uncontrollable inflation. -
Three Revolutions in Macroeconomics: Their Nature and Influence
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Laidler, David Working Paper Three revolutions in macroeconomics: Their nature and influence EPRI Working Paper, No. 2013-4 Provided in Cooperation with: Economic Policy Research Institute (EPRI), Department of Economics, University of Western Ontario Suggested Citation: Laidler, David (2013) : Three revolutions in macroeconomics: Their nature and influence, EPRI Working Paper, No. 2013-4, The University of Western Ontario, Economic Policy Research Institute (EPRI), London (Ontario) This Version is available at: http://hdl.handle.net/10419/123484 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen -
Nber Working Paper Series David Laidler On
NBER WORKING PAPER SERIES DAVID LAIDLER ON MONETARISM Michael Bordo Anna J. Schwartz Working Paper 12593 http://www.nber.org/papers/w12593 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 October 2006 This paper has been prepared for the Festschrift in Honor of David Laidler, University of Western Ontario, August 18-20, 2006. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. © 2006 by Michael Bordo and Anna J. Schwartz. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. David Laidler on Monetarism Michael Bordo and Anna J. Schwartz NBER Working Paper No. 12593 October 2006 JEL No. E00,E50 ABSTRACT David Laidler has been a major player in the development of the monetarist tradition. As the monetarist approach lost influence on policy makers he kept defending the importance of many of its principles. In this paper we survey and assess the impact on monetary economics of Laidler's work on the demand for money and the quantity theory of money; the transmission mechanism on the link between money and nominal income; the Phillips Curve; the monetary approach to the balance of payments; and monetary policy. Michael Bordo Faculty of Economics Cambridge University Austin Robinson Building Siegwick Avenue Cambridge ENGLAND CD3, 9DD and NBER [email protected] Anna J. Schwartz NBER 365 Fifth Ave, 5th Floor New York, NY 10016-4309 and NBER [email protected] 1. -
OLIGARCHS at OTTAWA, PART II Night a Success
/ Oligarchs at Otta-wa ..: Austin F. Cross ' ' VERY year on budget night, like an to advise the minister (that's the term, E unspectacular star at the tail of but actually our man writes the stuff) on that bright comet, the Hon. Douglas the technical aspects of taxation. His Abbott, there moves into the Press Gal- is the ethical concept of taxation. Not lery ' reception rQom, among others, Ken' immediately has he to be concerned with Eaton. In title, Assistant Deputy Minister such matters as whether the Fisheries of Finance: in fact, he is the fell ow who needs the money, or Trade and Com- wrote a lot of <the budget that the Hon. merce is bungling its administration. Ra- Mr. Abbott has just so entertainingly given. ther would it be his role to assess nicely, There are other tail-stars, of course, to the what for example, would be the effect of Abbott comet. Yet paradoxically none one cent more tax on cigarettes, or the will seem duller, none will be brighter, precise incidence of sales tax. than the same Ken Eaton. For a fellow _He and Harry Perry are a very good who has just heard a lot of his own fiscal team, and when they sit down to write theory and financial policy given to the their share of the budget, you have people of Canada in particular and the a brilliant duet being played. world in general, Ken Eaton is quiet "He's without a peer in his field," said enough. an expert enthusiastically, in discussing There he sits, a man who would pass in Eaton, and this expert is one man rarely a crowd. -
CURRICULUM VITAE (September 2020)
1 CURRICULUM VITAE (September 2020) NAME: David E.W. Laidler NATIONALITY: Canadian (also U.K.) DATE OF BIRTH: 12 August 1938 MARITAL STATUS: Married, one daughter HOME ADDRESS: 45 - 124 North Centre Road London, Ontario Canada N5X 4R3 Telephone: (519) 673-3014 FAX: (519) 661-3666 E-mail: [email protected] EDUCATION AND DEGREES HELD: Tynemouth School, Tynemouth, Northumberland, England, GCE 'O' Level 1953, 'A' Level, 1955, 'S' Level, 1956 London School of Economics, B.Sc. Econ. (Economics Analytic and Descriptive) 1st Class Honours, 1959 University of Syracuse, M.A. (Economics), 1960 University of Chicago, Ph.D. (Economics), 1964 University of Manchester, M.A. 1973 (not an "earned" degree) University of Western Ontario, LL.D.(h.c.) 2016 SCHOLARSHIPS, FELLOWSHIPS AND ACADEMIC HONOURS: 1956-1959 State Scholarship 1959-1960 University of Syracuse: University Fellowship 1960-1961 University of Chicago: Edward Hillman Fellowship 1962-1963 University of Chicago: Earhart Foundation Doctoral Dissertation Fellowship 1972 British Association for the Advancement of Science, Lister Lecture, to be given by a distinguished contributor to the Social Sciences under 35 years of age 1982 - Fellow of the Royal Society of Canada 1987-1988 President, Canadian Economics Association/Association Canadienne d'Economique 1988-1989 Faculty of Social Science Research Professor, University of Western Ontario 1994 Douglas Purvis Memorial Prize, awarded by the Canadian Economics Association for a significant work on Canadian Economic Policy (joint recipient with W.B.P. Robson) 1999 Hellmuth Prize for distinguished research in the Humanities and Social Sciences by a member of the faculty of the University of Western Ontario 2004-2005 Donner Prize for the best book of the year on Canadian public policy. -
Bank of Canada Review: July 2020
Bank of Canada Review: July 2020 Relevant Links : Policy Announcement: https://www.bankofcanada.ca/2020/07/fad-press-release-2020-07-15/ Monetary Policy Report: https://www.bankofcanada.ca/2020/07/mpr-2020-07-15/ Policy Press Conference: with Tiff Macklem and Senior Deputy Governor Wilkins: https://www.bankofcanada.ca/2020/07/opening-statement-150720/ BOC rates seen being on hold into 2023 after Gov Macklem says it will remain 0.25% until inflation is sustainably around 2% target. - Macklem also said that QE may be tapered off before rates rise, in line with earlier plan to buy at least CAD5b/wk of federal bonds until recovery is well underway.- "We will be looking for signs that the recovery is becoming more self-sustaining," Macklem said at press conference. "Logically yes, the recovery being well under way comes before capacity has been fully absorbed, but those of those are some ways off." - "We continue to think asset purchases will continue at least through the first quarter of 2021, and likely well into next year," RBC senior economist Josh Nye says in note. No rate rise until 2023 or later. - Capital Economics: "Bank signals it will not raise rates until at least 2023." - "The timing of the first BoC hike could be similar to that for the Fed, in early 2023," CIBC chief economist Avery Shenfeld said. "the phrase "well underway" also suggests that QE will end before the policy rate is hiked. Analyst Views Bank of America: "Low rates for a long, long time." BoA expects the "policy rate to remain at current levels for many quarters and see QE stepped up if needed. -
Passive Money, Active Money, and Monetary Policy
Passive Money, Active Money, and Monetary Policy David Laidler, Visiting Economist • The role of money in the transmission of or eight years, an inflation target, jointly set by monetary policy is still controversial. Some the Bank of Canada and the federal govern- regard it as reacting passively to changes in ment, has provided the anchor for Canada’s F monetary policy. For a period 20 times as long, prices, output, and interest rates; others see it the Quantity Theory of Money has provided econo- playing an active role in bringing about mists with a framework for analyzing the influence changes in these variables. of the supply of money on the inflation rate. The Bank of Canada regularly comments on the behaviour of • Empirical evidence favours an active the narrow M1 and the broader M2 aggregates in its interpretation of money’s role in the Canadian Monetary Policy Report and in the Bank of Canada economy, particularly in the case of narrow, Review, but the Quarterly Projection Model (QPM), transactions-oriented aggregates. which currently provides the analytic background against which the Bank’s policies are designed, • Institutional changes can, and do, create includes no monetary aggregate.1 Even so, there is a instabilities in the demand functions for strong case to be made that the money supply is not narrow aggregates, which undermine their only the key long-run determinant of inflation in the Canadian economy but is also an important variable usefulness as formal policy targets. in the transmission mechanism through which policy • There is, nevertheless, a strong case for the actions affect the price level, and, in the shorter run, income and employment as well.