Working Paper: NBER ID: w11586
Authors: Michael D. Bordo; Angela Redish
Abstract: On the seventieth birthday of the Bank of Canada, we evaluate the Bank's contribution to monetary policy in an international context. We focus on: the reasons for the establishment of the central bank in 1935, its unique record of floating in a sea of fixed currencies under Bretton Woods; its experience with the Great Inflation and monetarism; its pioneering adoption of inflation targeting; and recent innovations in the payments and the phasing out of reserve requirements.
Keywords: No keywords provided
JEL Codes: E58
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| political pressures (D72) | establishment of the Bank (G21) |
| establishment of the Bank (G21) | stabilization of the economy during the Great Depression (E63) |
| Bank's adoption of inflation targeting (E52) | reduction in inflation rates (E31) |
| Bank's policies (G21) | minimization of negative impacts of inflation and disinflation on the Canadian economy (E31) |
| US monetary policy (E52) | Canadian inflation rates (E31) |
| Bank's policies (G21) | Canadian monetary outcomes (N12) |