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008	200311t20202020oncd    ob   f000 0 eng d
040	|aCaOODSP|beng|erda|cCaOODSP
043	|an-cn---
086	1 |aFB3-5/2020-6E-PDF
100	1 |aDiez de los Rios, Antonio.
245	12|aA portfolio-balance model of inflation and yield curve determination / |cby Antonio Diez de los Rios.
264	1|aOttawa, Ontario, Canada : |bBank of Canada = Banque du Canada, |c2020.
264	4|c©2020
300	|a1 online resource (iii, 43, 4 pages) : |bcharts.
336	|atext|btxt|2rdacontent
337	|acomputer|bc|2rdamedia
338	|aonline resource|bcr|2rdacarrier
490	1 |aStaff working paper = Document de travail du personnel, |x1701-9397 ; |v2020-6
500	|aCover title.
504	|aIncludes bibliographical references (pages 31-32).
520	3 |a"We propose a portfolio-balance model of the yield curve in which inflation is determined through an interest rate rule that satisfies the Taylor principle. Because arbitrageurs care about their real wealth, they only absorb an increase in the supply of nominal bonds if they are compensated with an increase in their real rates of return. At the same time, because the Taylor principle implies that short-term nominal rates are adjusted more than one for one in response to changes in inflation, the real return on nominal bonds depends positively on inflation. In equilibrium, inflation increases when there is an increase in the supply of nominal bonds to compensate arbitrageurs for the additional supply they have to hold"--Abstract.
650	0|aInflation (Finance)
650	0|aMonetary policy.
650	6|aInflation.
650	6|aPolitique monétaire.
710	1 |aCanada.|bBank of Canada.
830	#0|aStaff working paper (Bank of Canada)|v2020-6.|w(CaOODSP)9.806221
856	40|qPDF|s575 KB|uhttps://publications.gc.ca/collections/collection_2020/banque-bank-canada/FB3-5-2020-6-eng.pdf