How Monetary Policy Is Made: Two Canadian Tales

Pierre Siklos and Matthias Neuenkirch

International Journal of Central Banking, 2015, vol. 11, issue 1, 225-250

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.

JEL-codes: E43 E52 E58 E61 E69 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.ijcb.org/journal/ijcb15q1a7.pdf (application/pdf)
http://www.ijcb.org/journal/ijcb15q1a7.htm (text/html)

Related works:
Working Paper: How Monetary Policy is made: Two Canadian Tales (2014)
Working Paper: How Monetary Policy is Made: Two Canadian Tales (2014)
Working Paper: How Monetary Policy is Made: Two Canadian Tales (2013)
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:ijc:ijcjou:y:2015:q:1:a:7

Access Statistics for this article

International Journal of Central Banking is currently edited by Loretta J. Mester

More articles in International Journal of Central Banking from International Journal of Central Banking
Bibliographic data for series maintained by Bank for International Settlements ().