E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T09:20:46+00:00On the Welfare Effects of Credit Arrangements
https://www.bankofcanada.ca/2012/12/working-paper-2012-43/
This paper studies the welfare effects of different credit arrangements and how these effects depend on the trading mechanism and inflation. In a competitive market, a deviation from the Friedman rule is always sub-optimal. Moreover, credit arrangements can be welfare-reducing, because increased consumption by credit users will drive up the price level so that money users have to reduce consumption when facing a binding liquidity restraint.2012-12-21T07:59:17+00:00enOn the Welfare Effects of Credit Arrangements2012-12-21Credit and credit aggregatesPayment clearing and settlement systemsWorking Paper 2012-43https://www.bankofcanada.ca/wp-content/uploads/2012/12/wp2012-43.pdfOn the Welfare Effects of Credit ArrangementsJonathan ChiuMei DongEnchuan ShaoDecember 2012EE4E40E5E50Monetary Policy and the Risk-Taking Channel: Insights from the Lending Behaviour of Banks
https://www.bankofcanada.ca/wp-content/uploads/2012/11/boc-review-autumn12-paligorova.pdf
The financial crisis of 2007-09 and the subsequent extended period of historically low real interest rates have revived the question of whether economic agents are willing to take on more risk when interest rates remain low for a prolonged time period. This increased appetite for risk, which causes economic agents to search for investment assets and strategies that generate higher investment returns, has been called the risk-taking channel of monetary policy. Recent academic research on banks suggests that lending policies in times of low interest rates can be consistent with the existence of a risk-taking channel of monetary policy in Europe, South America, the United States and Canada. Specifically, studies find that the terms of loans to risky borrowers become less stringent in periods of low interest rates. This risk-taking channel may amplify the effects of traditional transmission mechanisms, resulting in the creation of excessive credit.2012-11-15T07:45:39+00:00enMonetary Policy and the Risk-Taking Channel: Insights from the Lending Behaviour of Banks2012-11-15Financial Conditions and the Money-Output Relationship in Canada
https://www.bankofcanada.ca/2012/10/working-paper-2012-33/
We propose a drifting-coefficient model to empirically study the effect of money on output growth in Canada and to examine the role of prevailing financial conditions for that relationship. We show that such a time-varying approach can be a useful way of modelling the impact of money on growth, and can partly reconcile the lack of concensus in the literature on the question of whether money affects growth.2012-10-03T11:44:58+00:00enFinancial Conditions and the Money-Output Relationship in Canada2012-10-03Business fluctuations and cyclesCredit and credit aggregatesMonetary aggregatesWorking Paper 2012-33https://www.bankofcanada.ca/wp-content/uploads/2012/10/wp2012-33.pdfFinancial Conditions and the Money-Output Relationship in CanadaMaral KichianOctober 2012EE4E44E5E51Efficiency and Bargaining Power in the Interbank Loan Market
https://www.bankofcanada.ca/2012/09/working-paper-2012-29/
Using detailed loan transactions-level data we examine the efficiency of an overnight interbank lending market, and the bargaining power of its participants. Our analysis relies on the equilibrium concept of the core, which imposes a set of no-arbitrage conditions on trades in the market.2012-09-27T12:29:49+00:00enEfficiency and Bargaining Power in the Interbank Loan Market2012-09-27Financial institutionsPayment clearing and settlement systemsWorking Paper 2012-29https://www.bankofcanada.ca/wp-content/uploads/2012/09/wp2012-29.pdfEfficiency and Bargaining Power in the Interbank Loan MarketJason AllenJames ChapmanFederico EcheniqueMatthew ShumSeptember 2012CC7C71EE5E58GG2G21G28Measurement Bias in the Canadian Consumer Price Index: An Update
https://www.bankofcanada.ca/wp-content/uploads/2012/08/boc-review-summer12-sabourin.pdf
The consumer price index (CPI) is the most commonly used measure to track changes in the overall level of prices. Since it departs from a true cost-of-living index, the CPI is subject to four types of measurement bias—commodity substitution, outlet substitution, new goods and quality adjustment. The author updates previous Bank of Canada estimates of measurement bias in the Canadian CPI by examining these four sources of potential bias. He finds the total measurement bias over the 2005–11 period to be about 0.5 percentage point per year, consistent with the Bank’s earlier findings. Slightly more than half of this bias is caused by the fixed nature of the CPI basket of goods and services.2012-08-16T08:54:38+00:00enMeasurement Bias in the Canadian Consumer Price Index: An Update2012-08-16Inflation and Growth: A New Keynesian Perspective
https://www.bankofcanada.ca/2012/07/working-paper-2012-23/
The long-run relation between growth and inflation has not yet been studied in the context of nominal price and wage rigidities, despite the fact that these rigidities now figure prominently in workhorse macroeconomic models.2012-07-27T12:25:35+00:00enInflation and Growth: A New Keynesian Perspective2012-07-27Inflation: costs and benefitsWorking Paper 2012-23https://www.bankofcanada.ca/wp-content/uploads/2012/07/wp2012-23.pdfInflation and Growth: A New Keynesian PerspectiveRobert AmanoThomas J. CarterKevin MoranJuly 2012EE3E31E5E52OO3O31O4O42Unconventional Monetary Policy and the Great Recession: Estimating the Macroeconomic Effects of a Spread Compression at the Zero Lower Bound
https://www.bankofcanada.ca/2012/07/working-paper-2012-21/
We explore the macroeconomic effects of a compression in the long-term bond yield spread within the context of the Great Recession of 2007-2009 via a time-varying parameter structural VAR model.2012-07-23T07:55:26+00:00enUnconventional Monetary Policy and the Great Recession: Estimating the Macroeconomic Effects of a Spread Compression at the Zero Lower Bound2012-07-23Econometric and statistical methodsInterest ratesMonetary policy frameworkMonetary policy transmissionWorking Paper 2012-21https://www.bankofcanada.ca/wp-content/uploads/2012/07/wp2012-21.pdfUnconventional Monetary Policy and the Great Recession: Estimating the Macroeconomic Effects of a Spread Compression at the Zero Lower BoundChristiane BaumeisterLuca BenatiJuly 2012CC1C11C3C32EE5E52E58Commodities and Monetary Policy: Implications for Inflation and Price Level Targeting
https://www.bankofcanada.ca/2012/06/working-paper-2012-16/
We examine the relative ability of simple inflation targeting (IT) and price level targeting (PLT) monetary policy rules to minimize both inflation variability and business cycle fluctuations in Canada for shocks that have important consequences for global commodity prices.2012-06-14T09:51:31+00:00enCommodities and Monetary Policy: Implications for Inflation and Price Level Targeting2012-06-14Economic modelsInflation and pricesInternational topicsMonetary policy frameworkWorking Paper 2012-16https://www.bankofcanada.ca/wp-content/uploads/2012/06/wp2012-16.pdfCommodities and Monetary Policy: Implications for Inflation and Price Level TargetingDonald ColettiRené LalondePaul MassonDirk MuirStephen SnuddenJune 2012EE1E17E3E31E37E5E52FF4F41QQ4Q43Estimating the Demand for Settlement Balances in the Canadian Large Value Transfer System
https://www.bankofcanada.ca/2012/05/working-paper-2012-15/
This paper applies a static model of an interest rate corridor to the Canadian data, and estimates the aggregate demand for central-bank settlement balances in the Large Value Transfer System (LVTS).2012-05-28T10:57:33+00:00enEstimating the Demand for Settlement Balances in the Canadian Large Value Transfer System2012-05-28Interest ratesMonetary policy implementationPayment clearing and settlement systemsWorking Paper 2012-15https://www.bankofcanada.ca/wp-content/uploads/2012/05/wp2012-15.pdfEstimating the Demand for Settlement Balances in the Canadian Large Value Transfer SystemNellie ZhangMay 2012CC3C36EE4E40E5E50GG0G01Inflation Targeting: The Recent International Experience
https://www.bankofcanada.ca/wp-content/uploads/2012/05/boc-review-spring12-lavigne.pdf
In the years since the 2006 renewal of Canada’s inflation-control agreement, monetary policy regimes have faced significant shocks, including the global economic and financial crisis. This article reviews the recent experience with inflation targeting, including the debate about the appropriate role of monetary policy in maintaining financial stability. In the aftermath of the crisis, both […]2012-05-17T10:22:01+00:00enInflation Targeting: The Recent International Experience2012-05-17