Monetary Policy Governance: Bank of Canada Practices to Support Policy Effectiveness

Brigitte Desroches, Sharon Kozicki and Laure Simon

No 2024-14, Discussion Papers from Bank of Canada

Abstract: Monetary policy governance—how monetary policy objectives are determined, how decisions are made and who makes them—determines the quality and effectiveness of monetary policy decisions. In this paper, we examine some desirable and some adverse outcomes associated with different governance structures. We discuss the roles of legislation, institutional features, and processes and practices in establishing various aspects of governance. We highlight the importance of the domestic context in determining what governance structure works best for a given central bank. Finally, we provide an update on monetary policy governance at the Bank of Canada and how it has evolved over time.

Keywords: Credibility; Monetary policy communications; Monetary policy framework (search for similar items in EconPapers)
JEL-codes: E02 E5 E58 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2024-09
New Economics Papers: this item is included in nep-ban, nep-cba and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.bankofcanada.ca/2024/09/staff-discussion-paper-2024-14/ Abstract (text/html)
https://www.bankofcanada.ca/wp-content/uploads/2024/09/sdp2024-14.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bca:bocadp:24-14

Access Statistics for this paper

More papers in Discussion Papers from Bank of Canada 234 Wellington Street, Ottawa, Ontario, K1A 0G9, Canada. Contact information at EDIRC.
Bibliographic data for series maintained by ().