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Monetary policy challenges in a volatile world / Stefano Gnocchi [and] Matteo Cacciatore.FB3-8/2026-34E-PDF

"Rising macroeconomic volatility and structural transformations—such as deglobalization, climate risks, and rapid AI adoption—are reshaping inflation dynamics and the trade-offs faced by monetary policy. Drawing on existing literature, internal modelling, and new experimental evidence, we assess the conditions under which policymakers may accommodate supply-driven inflation. We find that the current framework retains sufficient flexibility to balance inflation and output stabilization, provided inflation expectations remain well anchored, and policy responses appropriately reflect the size and persistence of supply shocks, as well as prevailing economic conditions"--Abstract, page ii.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.965202&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleMonetary policy challenges in a volatile world / Stefano Gnocchi [and] Matteo Cacciatore.
Series title
  • Staff analytical paper = Document analytique du personnel, 3110-9195 ; 2026-34
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • Cover title.
  • Includes bibliographical references.
  • Includes abstract in French.
Publishing information
  • [Ottawa] : Bank of Canada = Banque du Canada, July 24, 2026.
  • ©2026
Author / Contributor
  • Gnocchi, Stefano, author.
Description1 online resource (ii, 28 pages) : charts.
Catalogue number
  • FB3-8/2026-34E-PDF
Subject terms
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