Suchergebnisse

AbstractThis paper studies decision making by the governing council of the Bank of Canada under two alternative protocols. The protocols are: (i) the median model and (ii) the inclusive‐voting model due to Riboni and Ruge‐Murcia (2020), where the chair and the median share proposal power. Results show that the data favour a version of the inclusive‐voting model where the chair of the committee is moderately inclusive and which endogenously generates the consensus outcome in Riboni and Ruge‐Murcia (2010). Decision‐making frictions are empirically important in the formulation of monetary policy, and the selected policy is the outcome of a compromise between committee members.

AbstractThis paper examines the intellectual environment in Canada that led to the adoption of inflation targets starting in 1991, reviews some of the Canadian contributions to the vast literature on inflation targeting and presents evidence in support of the view that the implementation of inflation targeting in Canada has been particularly successful when compared with the experiences of other inflation‐targeting countries and the US.