E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T19:07:01+00:00CBDC: Banking and Anonymity
https://www.bankofcanada.ca/2024/03/staff-working-paper-2024-9/
We examine the optimal amount of user anonymity in a central bank digital currency in the context of bank lending. Anonymity, defined as the lender’s inability to discern an entrepreneur’s actions that enable fund diversion, influences the choice of payment instrument due to its impact on a bank’s lending decisions.2024-03-22T13:47:02+00:00enCBDC: Banking and Anonymity2024-03-22Digital currencies and fintechStaff Working Paper 2024-9https://www.bankofcanada.ca/wp-content/uploads/2024/03/swp2024-9.pdfStaff Working Paper 2024-9Yuteng ChengRyuichiro IzumiMarch 2024EE4E42E5E58GG2G28Monetary Policy Transmission Through Shadow and Traditional Banks
https://www.bankofcanada.ca/2024/03/staff-working-paper-2024-8/
I investigate how monetary policy transmits to mortgage rates via the mortgage market concentration channel for both traditional and shadow banks in the United States from 2009 to 2019. On average, shadow and traditional banks exhibit only a slight disparity in transmitting monetary shocks to mortgage rates.2024-03-21T14:53:44+00:00enMonetary Policy Transmission Through Shadow and Traditional Banks2024-03-21Financial institutionsInterest ratesMonetary policy transmissionStaff Working Paper 2024-8https://www.bankofcanada.ca/wp-content/uploads/2024/03/swp2024-8.pdfStaff Working Paper 2024-8Amina EnkhboldMarch 2024EE4E44E5E52GG2G21What has been putting upward pressure on CORRA?
https://www.bankofcanada.ca/2024/03/staff-analytical-note-2024-4/
From the autumn of 2023 into early 2024, the Canadian Overnight Repo Rate Average (CORRA), a measure of the cost of overnight general collateral Canadian dollar repos, was consistently well above the Bank’s target for the overnight rate. We find that, among several factors, long bond positions that require repo financing are the main driver of the recent upward pressure on CORRA.2024-03-21T09:35:25+00:00enWhat has been putting upward pressure on CORRA?2024-03-21How changes in the share of constrained households affect the effectiveness of monetary policy
https://www.bankofcanada.ca/2024/02/staff-analytical-note-2024-3/
We measure how the change in the share of constrained households in Canada following the COVID-19 recession has impacted the effectiveness of monetary policy.2024-02-21T14:06:06+00:00enHow changes in the share of constrained households affect the effectiveness of monetary policy2024-02-21Central Bank Digital Currency and Banking Choices
https://www.bankofcanada.ca/2024/02/staff-working-paper-2024-4/
To what extent does a central bank digital currency (CBDC) compete with bank deposits? To answer this question, we develop and estimate a structural model where each household chooses which financial institution to deposit their digital money with.2024-02-08T09:27:59+00:00enCentral Bank Digital Currency and Banking Choices2024-02-08Central bank researchDigital currencies and fintechStaff Working Paper 2024-4https://www.bankofcanada.ca/wp-content/uploads/2024/02/swp2024-4.pdfCentral Bank Digital Currency and Banking ChoicesJiaqi LiAndrew UsherYu ZhuFebruary 2024EE5E50E58The Role of International Financial Integration in Monetary Policy Transmission
https://www.bankofcanada.ca/2024/02/staff-working-paper-2024-3/
We propose an open-economy New Keynesian model with financial integration that allows financial intermediaries to hold foreign long-term bonds. We study the implications of financial integration on monetary policy transmission. Among various aspects of financial integration, the bond duration plays a major role. These results hold for conventional and unconventional monetary policies.2024-02-06T14:47:16+00:00enThe Role of International Financial Integration in Monetary Policy Transmission2024-02-06Central bank researchInternational financial marketsMonetary policy transmissionStaff Working Paper 2024-3https://www.bankofcanada.ca/wp-content/uploads/2024/02/swp2024-3.pdfThe Role of International Financial Integration in Monetary Policy TransmissionJing Cynthia WuYinxi XieJi ZhangFebruary 2024EE4E44E5E52FF3F36F4F42Communicating Inflation Uncertainty and Household Expectations
https://www.bankofcanada.ca/2023/12/staff-working-paper-2023-63/
We examine the value of direct communication to households about inflation and the uncertainty around inflation statistics. All types of information about inflation are effective at immediately managing inflation expectations, with information about outlooks being more effective and relevant than that about recent inflation and Bank targets.2023-12-29T10:57:58+00:00enCommunicating Inflation Uncertainty and Household Expectations2023-12-29Central bank researchCredibilityInflation and pricesInflation targetsMonetary policy and uncertaintyMonetary policy communicationsStaff Working Paper 2023-63https://www.bankofcanada.ca/wp-content/uploads/2023/12/swp2023-63.pdfCommunicating Inflation Uncertainty and Household ExpectationsOlena KostyshynaLuba PetersenDecember 2023CC9C93DD8D84EE5E59E7Monetary Policy and Racial Inequality in Housing Markets: A Study of 140 US Metropolitan Areas
https://www.bankofcanada.ca/2023/12/staff-working-paper-2023-62/
We find that minority households see greater declines in housing returns and entries into homeownership than White households after a tightening of monetary policy. Our findings emphasize the unintended consequences of monetary policy on racial inequality in the housing market.2023-12-28T13:37:09+00:00enMonetary Policy and Racial Inequality in Housing Markets: A Study of 140 US Metropolitan Areas2023-12-28Central bank researchHousingMonetary policyStaff Working Paper 2023-62https://www.bankofcanada.ca/wp-content/uploads/2023/12/swp2023-62.pdfMonetary Policy and Racial Inequality in Housing Markets: A Study of 140 US Metropolitan AreasQi LiXu ZhangDecember 2023EE4E40E5E52RR0R00The impact of higher interest rates on mortgage payments
https://www.bankofcanada.ca/2023/12/staff-analytical-note-2023-19/
We investigate how the increase in interest rates since early 2022 is affecting mortgage payments. By November 2023, less than half of mortgage holders had faced higher payments. Many borrowers will see a sizable increase in payments at renewal, although income growth could help mitigate the impact.2023-12-19T14:33:41+00:00enThe impact of higher interest rates on mortgage payments2023-12-19Supporting the Transition to Net-Zero Emissions: The Evolving Role of Central Banks
https://www.bankofcanada.ca/2023/12/staff-discussion-paper-2023-31/
While climate change was largely tackled by government policies in the past, central banks are increasingly grappling with the risks climate change poses. They are evaluating their operational policies to reflect these risks and the transition to a net-zero economy. This paper explores the trade-offs and considerations central banks face.2023-12-18T14:46:24+00:00enSupporting the Transition to Net-Zero Emissions: The Evolving Role of Central Banks2023-12-18Central bank researchClimate changeFinancial marketsStaff Discussion Paper 2023-31https://www.bankofcanada.ca/wp-content/uploads/2023/12/sdp2023-31.pdfSupporting the Transition to Net-Zero Emissions: The Evolving Role of Central BanksKaren McGuinnessDecember 2023DD5D53EE5E58E6E63GG3G32QQ5Q54