Money in the Bank (of Canada)
AbstractWith the demise of monetary targeting over the past 20 years in many major countries, the question has arisen as to whether central banks should look at money at all when formulating and conducting monetary policy. The author argues that the mainstream paradigm, which gives no useful role to money, is unlikely to capture the full richness of the transmission mechanism. Moreover, on the face of it, the empirical evidence in Canada is inconsistent with the mainstream paradigm. For these reasons, the Bank of Canada devotes significant attention in its research, analysis, and communication to the behaviour of monetary aggregates and their possible role in the transmission mechanism. This report describes the use of the aggregates as of the end of 2001.
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Bibliographic InfoPaper provided by Bank of Canada in its series Technical Reports with number 93.
Length: 37 pages
Date of creation: 2003
Date of revision:
Contact details of provider:
Postal: 234 Wellington Street, Ottawa, Ontario, K1A 0G9, Canada
Phone: 613 782-8845
Fax: 613 782-8874
Web page: http://www.bank-banque-canada.ca/
Monetary aggregates; Transmission of monetary policy;
Find related papers by JEL classification:
- E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
- E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-02-15 (All new papers)
- NEP-MAC-2004-02-15 (Macroeconomics)
- NEP-MON-2004-02-15 (Monetary Economics)
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