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Balancing act : monetary policy responses to natural disasters / Tatjana Dahlhaus, Alexander Ueberfeldt, Malik Shukayev.FB3-5/2026-28E-PDF

"Natural disasters pose complex challenges for monetary policy in resource-rich small open economies. Using an open-economy dynamic stochastic general equilibrium model calibrated to Canada, we embed stochastic disaster shocks affecting capital, productivity, and the commodity sector. Drawing on detailed historical data, we quantify disaster-specific transmission channels and show that most disasters act as supply shocks, reducing output and modestly raising inflation. The magnitude and persistence of these effects depend on disaster type, sectoral exposure, and spillovers through global trade and terms-of-trade channels. The framework provides a forward-looking assessment of climate-related risks and their implications for monetary policy"--Abstract, page [i].

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.965209&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleBalancing act : monetary policy responses to natural disasters / Tatjana Dahlhaus, Alexander Ueberfeldt, Malik Shukayev.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2026-28
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • Cover title.
  • Includes bibliographical references.
Publishing information
  • [Ottawa] : Bank of Canada = Banque du Canada, July 24, 2026.
  • ©2026
Author / Contributor
  • Dahlhaus, Tatjana, author.
Description1 online resource ([i], 43 pages) : charts.
Catalogue number
  • FB3-5/2026-28E-PDF
Subject terms
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