Communicating uncertainty in monetary policy / by Sharon Kozicki and Jill Vardy.: FB3-6/2017-14E-PDF

"While central banks cannot provide complete foresight with respect to their future policy actions, it is in the interests of both central banks and market participants that central banks be transparent about their reaction functions and how they may evolve in response to economic developments, shocks, and risks to their outlooks. This paper outlines the various ways in which the Bank of Canada seeks to explain its economic outlook and monetary policy decisions, with an emphasis on how different sources of uncertainty factor into monetary policy communications. To help markets and others understand its reaction function, the central bank must explain what uncertainties are weighing on policy and how (or if) these uncertainties are being considered in policy formulation. Discussion of uncertainty becomes particularly important when a large shock has hit the economy or when a central bank’s view or its policy stance is changing"--Abstract, p. ii.

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Publication information
Department/Agency Bank of Canada.
Title Communicating uncertainty in monetary policy / by Sharon Kozicki and Jill Vardy.
Series title Bank of Canada staff discussion paper, 1914-0568 ; 2017-14
Publication type Series - View Master Record
Language [English]
Format Electronic
Electronic document
Note(s) "November 2017."
Includes bibliographical references.
Includes abstract in French.
Publishing information [Ottawa] : Bank of Canada, 2017.
Author / Contributor Kozicki, Sharon,1964-
Vardy, Jill, 1964- .
Description iii, 26 p. : col. chart
Catalogue number
  • FB3-6/2017-14E-PDF
Subject terms Monetary policy
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