IDEAS home Printed from https://ideas.repec.org/a/mes/jeciss/v50y2016i3p814-833.html

The Politics of Canadian Monetary Policy: Reassessing Canadian Inflation, Part II

Author

Listed:
  • Scott Aquanno
  • Jordan Brennan

Abstract

This is the second installment of a two-part article on Canadian inflation. This article builds on the traditional conflict theory of inflation by applying insights from the post-Keynesian and micro-politics theories of money and central bank policy. It argues that the Bank of Canada’s inflation targets — not just inflation itself — have to be understood in terms of social conflict and power. This analysis extends the evidence on the distributive implications of Canadian inflation offered in Part I.

Suggested Citation

  • Scott Aquanno & Jordan Brennan, 2016. "The Politics of Canadian Monetary Policy: Reassessing Canadian Inflation, Part II," Journal of Economic Issues, Taylor & Francis Journals, vol. 50(3), pages 814-833, July.
    • Handle: RePEc:mes:jeciss:v:50:y:2016:i:3:p:814-833
    DOI: 10.1080/00213624.2016.1213589
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00213624.2016.1213589
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00213624.2016.1213589?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. William K. Carroll & Murray Shaw, 2001. "Consolidating a Neoliberal Policy Bloc in Canada, 1976 to 1996," Canadian Public Policy, University of Toronto Press, vol. 27(2), pages 195-217, June.
    2. Marc Lavoie, 1992. "Foundations of Post-Keynesian Economic Analysis," Books, Edward Elgar Publishing, number 275, August.
    3. Gerald Epstein, 2003. "Alternatives to Inflation Targeting Monetary Policy for Stable and Egalitarian Growth: A Brief Research Summary," Working Papers wp62, Political Economy Research Institute, University of Massachusetts at Amherst.
    4. Elissa Braunstein & James Heintz, 2009. "The Gendered Political Economy of Inflation Targeting: Assessing its Impacts on Employment," Chapters, in: Gerald A. Epstein & A. Erinc Yeldan (ed.), Beyond Inflation Targeting, chapter 5, Edward Elgar Publishing.
    5. Rosenberg, Sam & Weisskopf, Thomas E, 1981. "A Conflict Theory Approach to Inflation in the Postwar U.S. Economy," American Economic Review, American Economic Association, vol. 71(2), pages 42-47, May.
    6. Jonathan Kirshner, 1998. "Disinflation, Structural Change, and Distribution," Review of Radical Political Economics, Union for Radical Political Economics, vol. 30(1), pages 53-89, March.
    7. Edward Nelson, 2005. "Monetary Policy Neglect and the Great Inflation in Canada, Australia, and New Zealand," International Journal of Central Banking, International Journal of Central Banking, vol. 1(1), May.
    8. Nitzan, Jonathan & Bichler, Shimshon, 2009. "Capital as Power. A Study of Order and Creorder," EconStor Books, ZBW - Leibniz Information Centre for Economics, number 157973.
    9. Gerald Epstein, 2005. "Central Banks as Agents of Economic Development," Working Papers wp104, Political Economy Research Institute, University of Massachusetts at Amherst.
    10. Mark Setterfield (ed.), 2002. "The Economics of Demand-Led Growth," Books, Edward Elgar Publishing, number 1864, August.
    11. Basil J. Moore, 1986. "How Credit Drives the Money Supply: The Significance of Institutional Developments," Journal of Economic Issues, Taylor & Francis Journals, vol. 20(2), pages 443-452, June.
    12. Pierre Fortin, 2001. "Interest Rates, Unemployment and Inflation in the 1990s: The Canadian Experience," The Review of Economic Performance and Social Progress, in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Di (ed.), The Review of Economic Performance and Social Progress 2001: The Longest Decade: Canada in the 1990s, volume 1, Centre for the Study of Living Standards;The Institutute for Research on Public Policy.
    13. John Crow, 2009. "Canada's Difficult Experience in Reducing Inflation: Cautionary Lessons," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 299, November.
    14. Paul Dalziel, 1999. "A Post Keynesian Theory of Asset Price Inflation with Endogenous Money," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 22(2), pages 227-245, December.
    15. Jonathan Kirshner, 2001. "The Political Economy of Low Inflation," Journal of Economic Surveys, Wiley Blackwell, vol. 15(1), pages 41-70, February.
    16. Gerald A. Epstein & A. Erinc Yeldan (ed.), 2009. "Beyond Inflation Targeting," Books, Edward Elgar Publishing, number 13168, August.
    17. Gordon G. Thiessen, 1998. "The Canadian Experience with Targets for Inflation Control," Canadian Public Policy, University of Toronto Press, vol. 24(4), pages 415-428, December.
    18. Frederic S. Mishkin & Klaus Schmidt-Hebbel, 2001. "One Decade of Inflation Targeting in the World: What Do We Know and What Do We Need to Know?," NBER Working Papers 8397, National Bureau of Economic Research, Inc.
    19. John Murray, 2013. "Monetary Policy Decision Making at the Bank of Canada," Bank of Canada Review, Bank of Canada, vol. 2013(Autumn), pages 1-9.
    20. Christopher Ragan, 2011. "The Evolution of Canadian Monetary Policy: Successful Ideas through Natural Selection," New Directions for Intelligent Government in Canada: Papers in Honour of Ian Stewart, in: Fred Gorbet & Andrew Sharpe (ed.),New Directions for Intelligent Government in Canada: Papers in Honour of Ian Stewart, pages 49-80, Centre for the Study of Living Standards.
    21. Cukierman, Alex, 1994. "Central Bank Independence and Monetary Control," Economic Journal, Royal Economic Society, vol. 104(427), pages 1437-1448, November.
    22. J. Matthew Clark, 1996. "The Bank of Canada, Accountability and Legitimacy: Some Proposals for Reform," Canadian Public Policy, University of Toronto Press, vol. 22(4), pages 330-341, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Takamitsu Kurita & Patrick James, 2022. "The Canadian–US dollar exchange rate over the four decades of the post‐Bretton Woods float: An econometric study allowing for structural breaks," Metroeconomica, Wiley Blackwell, vol. 73(3), pages 856-883, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Louis-Philippe Rochon & Marc Setterfield, 2011. "Post-Keynesian Interest Rate Rules and Macroeconomic Performance: A Comparative Evaluation," Chapters, in: Claude Gnos & Louis-Philippe Rochon (ed.), Credit, Money and Macroeconomic Policy, chapter 7, Edward Elgar Publishing.
    2. Faul, Joseph & Khumalo, Bridgette & Pashe, Mpho & Khuzwayo, Miranda & Banda, Kamogelo & Jali, Senzo & Myeni, Bathandekile & Pule, Retlaodirela & Mosito, Boitshoko & Jack, Lona-u-Thando & Phiri, Andrew, 2014. "Is South Africa's inflation target too persistent for monetary policy conduct?," MPRA Paper 58233, University Library of Munich, Germany.
    3. Hiroaki Sasaki & Shinya Fujita, 2015. "Demand and Income Distribution in a Two-Country Kaleckian Model," Discussion papers e-14-017, Graduate School of Economics Project Center, Kyoto University.
    4. Eckhard Hein, 2016. "Secular stagnation or stagnation policy? Steindl after Summers," PSL Quarterly Review, Economia civile, vol. 69(276), pages 3-47.
    5. Sasaki, Hiroaki, 2012. "Is the long-run equilibrium wage-led or profit-led? A Kaleckian approach," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 231-244.
    6. Araujo, Ricardo Azevedo, 2013. "Cumulative causation in a structural economic dynamic approach to economic growth and uneven development," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 130-140.
    7. Hein, Eckhard, 2011. "Distribution, ‘Financialisation’ and the Financial and Economic Crisis – Implications for Post-crisis Economic Policies," MPRA Paper 31180, University Library of Munich, Germany.
    8. Mark Setterfield & Kristen Leblond, 2003. "The phillips curve and US macroeconomic performance during the 1990s," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(4), pages 361-376.
    9. Eduardo F Bastian & Sébastien Charles & Jonathan Marie, 2024. "Inflation regimes and hyperinflation: a Post-Keynesian/structuralist typology," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 48(4), pages 681-708.
    10. Leonardo Vera, 2014. "The Simple Post-Keynesian Monetary Policy Model: An Open Economy Approach," Review of Political Economy, Taylor & Francis Journals, vol. 26(4), pages 526-548, October.
    11. Francisco Ruge‐Murcia, 2022. "How do central banks make decisions?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(4), pages 1643-1670, November.
    12. Phan, Tuan, 2016. "Has Monetary Policy Become More Aggressive, But Less Effective Over Time?," MPRA Paper 107200, University Library of Munich, Germany.
    13. Yeldan Erinc A., 2008. "Prospects for Inflation Targeting in the MENA Region: Feasibility, Desirability and Alternatives," Review of Middle East Economics and Finance, De Gruyter, vol. 4(3), pages 83-100, September.
    14. Eckhard Hein, 2018. "Stagnation policy in the Eurozone and economic policy alternatives: A Steindlian/neo-Kaleckian perspective," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 44(3), pages 315-348.
    15. Eckhard Hein & Marc Lavoie & Till van Treeck, 2011. "Some instability puzzles in Kaleckian models of growth and distribution: a critical survey," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 35(3), pages 587-612.
    16. Palazuelos Manso, Enrique & Fernández Sánchez, Rafael, 2007. "La tasa de beneficio en la dinámica económica de los países europeos, 1984-2003," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 25, pages 901-926, Diciembre.
    17. Sasaki, Hiroaki, 2018. "タイトル：カレツキアン・モデルの基本骨格――短期モデルと長期モデル―― [The Basic Framework of the Kaleckian Model of Growth and Distribution: Short-run Model and Long-run Model]," MPRA Paper 88986, University Library of Munich, Germany.
    18. Eckhard Hein, 2006. "Interest, Debt and Capital Accumulation—A Kaleckian Approach," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(3), pages 337-352.
    19. Mario Cassetti, 2006. "A note on the long-run behaviour of Kaleckian models," Review of Political Economy, Taylor & Francis Journals, vol. 18(4), pages 497-508.
    20. Eckhard Hein & Lena Vogel, 2009. "Distribution and Growth in France and Germany: Single Equation Estimations and Model Simulations Based on the Bhaduri/Marglin Model," Review of Political Economy, Taylor & Francis Journals, vol. 21(2), pages 245-272.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:jeciss:v:50:y:2016:i:3:p:814-833. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MJEI20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.