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64
result(s)
Monetary Policy Implementation and Payment System Modernization
Staff Working Paper 2020-26
Jonathan Witmer
Canada plans to adopt a retail payment system to allow Canadians to pay in real time (or near real time) 24 hours a day, 7 days a week. However, the traditional model for setting the overnight interest rate does not operate 24/7.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Monetary policy implementation,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E40,
E42,
E43
Central Bank Communication That Works: Lessons from Lab Experiments
Staff Working Paper 2019-21
Oleksiy Kryvtsov,
Luba Petersen
We use controlled laboratory experiments to test the causal effects of central bank communication on economic expectations and to distinguish the underlying mechanisms of those effects. In an experiment where subjects learn to forecast economic variables, we find that central bank communication has a stabilizing effect on individual and aggregate outcomes and that the size of the effect varies with the type of communication.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Monetary policy implementation,
Monetary policy transmission
JEL Code(s):
C,
C9,
D,
D8,
D84,
E,
E3,
E5,
E52
Following the Money: Evidence for the Portfolio Balance Channel of Quantitative Easing
Staff Working Paper 2018-33
Itay Goldstein,
Jonathan Witmer,
Jing Yang
Recent research suggests that quantitative easing (QE) may affect a broad range of asset prices through a portfolio balance channel. Using novel security-level holding data of individual US mutual funds, we establish evidence that portfolio rebalancing occurred both within and across funds.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Monetary policy,
Monetary policy implementation,
Monetary policy transmission
JEL Code(s):
E,
E5,
E58,
G,
G2,
G23
Assessing the Impact of Demand Shocks on the US Term Premium
Staff Discussion Paper 2018-7
Russell Barnett,
Konrad Zmitrowicz
During and after the Great Recession of 2008–09, conventional monetary policy in the United States and many other advanced economies was constrained by the effective lower bound (ELB) on nominal interest rates. Several central banks implemented large-scale asset purchase (LSAP) programs, more commonly known as quantitative easing or QE, to provide additional monetary stimulus.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Financial markets,
Interest rates,
Monetary policy framework,
Monetary policy implementation,
Monetary policy transmission
JEL Code(s):
E,
E4,
E43,
E5,
E52,
E58,
E6,
E61,
E65,
G,
G1,
G12
Noisy Monetary Policy
Staff Working Paper 2018-23
Tatjana Dahlhaus,
Luca Gambetti
We introduce limited information in monetary policy. Agents receive signals from the central bank revealing new information (“news") about the future evolution of the policy rate before changes in the rate actually take place. However, the signal is disturbed by noise.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Econometric and statistical methods,
Financial markets,
Monetary policy implementation,
Monetary policy transmission
JEL Code(s):
C,
C1,
C18,
C3,
C32,
E,
E0,
E02,
E4,
E43,
E5,
E52
November 16, 2017
An Initial Assessment of Changes to the Bank of Canada’s Framework for Market Operations
The Bank of Canada made changes to several of the tools that make up its framework for operations and liquidity provision. These changes came about after a comprehensive re-view of the framework and are designed to help the Bank better achieve its objectives of reinforcing the target for the overnight rate and supporting the well-functioning of Cana-dian financial markets under normal market conditions.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Financial markets,
Financial stability,
Monetary policy framework,
Monetary policy implementation,
Monetary policy transmission,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E42,
E44,
E5,
E52,
E58,
G,
G0,
G01,
G1,
G18
Monetary Policy Implementation in a Negative Rate Environment
Staff Working Paper 2017-25
Michael Boutros,
Jonathan Witmer
Monetary policy implementation could, in theory, be constrained by deeply negative rates since overnight market participants may have an incentive to invest in cash rather than lend to other participants.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Interest rates,
Monetary policy framework,
Monetary policy implementation
JEL Code(s):
E,
E4,
E40,
E42,
E43,
G,
G0
What Explains Month-End Funding Pressure in Canada?
Staff Discussion Paper 2017-9
Christopher S. Sutherland
The Canadian overnight repo market persistently shows signs of latent funding pressure around month-end periods. Both the overnight repo rate and Bank of Canada liquidity provision tend to rise in these windows. This paper proposes three non-mutually exclusive hypotheses to explain this phenomenon.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Financial markets,
Interest rates,
Monetary policy framework,
Monetary policy implementation,
Monetary policy transmission
JEL Code(s):
E,
E4,
E41,
E43,
E5,
E52,
E58,
F,
F3,
F36,
G,
G1,
G14,
G15,
G2,
G21
May 11, 2017
Unconventional Monetary Policy: The Perspective of a Small Open Economy
How do unconventional monetary policies like quantitative easing and negative interest rates affect domestic financial conditions and the broader economy in small open econo-mies, such as Canada? These policies are effective in depreciating the exchange rate in small open economies, while lower interest rates are also passed through to the economy, albeit only partially. When conventional monetary policy is close to its limits, fiscal policy may be a more important complement to monetary policy in a small economy, particularly if global demand for safe assets compresses long-term interest rates.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Interest rates,
Monetary policy framework,
Monetary policy implementation,
Monetary policy transmission
JEL Code(s):
E,
E5,
E52,
E58,
E6,
E61,
E65