Uncertainty and monetary policy

• Tractable Term-Structure Models and the Zero Lower Bound

  Staff Working Paper 2015-46 Bruno Feunou, Jean-Sébastien Fontaine, Anh Le, Christian Lundblad

  We greatly expand the space of tractable term-structure models. We consider one example that combines positive yields with rich volatility and correlation dynamics. Bond prices are expressed in closed form and estimation is straightforward.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Asset Pricing, Interest rates, International financial markets, International topics, Transmission of monetary policy, Uncertainty and monetary policy JEL Code(s): G, G1, G12

• 19 November 2015 A Survey of Consumer Expectations for Canada

  Bank of Canada Review - Autumn 2015 Marc-André Gosselin, Mikael Khan

  The Bank of Canada recently launched a quarterly survey to measure the expectations of Canadian households: the Canadian Survey of Consumer Expectations (CSCE). The data collected provide comprehensive information about consumer expectations for and uncertainty about inflation, the labour market and household finance. This article describes the CSCE and illustrates its potential to offer rich information about Canadian consumers for researchers and policy-makers.

  Content Type(s): Publications, Bank of Canada Review Article Topic(s): Central bank research, Housing, Inflation and prices, Interest rates, Labour markets, Uncertainty and monetary policy JEL Code(s): D, D1, D12, D8, D84, E, E3, E31, E5, E52, J, J0

• Forward Guidance at the Effective Lower Bound: International Experience

  Staff Discussion Paper 2015-15 Karyne B. Charbonneau, Lori Rennison

  Forward guidance is one of the policy tools that a central bank can implement if it seeks to provide additional monetary stimulus when it is operating at the effective lower bound (ELB) on interest rates. It became more widely used during and after the global financial crisis.

  Content Type(s): Staff Research, Staff Discussion Papers Topic(s): Monetary policy framework, Monetary policy implementation, Transmission of monetary policy, Uncertainty and monetary policy JEL Code(s): E, E4, E43, E5, E52, E58, E6