How Monetary Policy Is Made: Two Canadian Tales

B-Tier
Journal: International Journal of Central Banking
Year: 2015
Volume: 11
Issue: 1
Pages: 225-250

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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 committees’ recommendations are small but persistent. The MPC is more responsive to the output gap than its GC counterpart. Both committees respond similarly to inflation. Disagreement within the MPC and with the GC is more likely when rates are rising. Finally, the Bank’s forward guidance had a significant influence on the MPC’s views about the future inflation path.

Technical Details

RePEc Handle
repec:ijc:ijcjou:y:2015:q:1:a:7
Journal Field
Macro
Author Count
2
Added to Database
2026-01-26