How Monetary Policy is made: Two Canadian Tales

Pierre Siklos and Matthias Neuenkirch

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

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 committee’s 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)
Pages: 45 pages
Date: 2014-07
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://cama.crawford.anu.edu.au/sites/default/fil ... iklos_neuenkirch.pdf (application/pdf)

Related works:
Journal Article: How Monetary Policy Is Made: Two Canadian Tales (2015)
Working Paper: How Monetary Policy is Made: Two Canadian Tales (2014)
Working Paper: How Monetary Policy is Made: Two Canadian Tales (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2014-53

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