E58 - Central Banks and Their Policies - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T06:03:46+00:00Estimating Canada’s Effective Lower Bound
https://www.bankofcanada.ca/2015/12/staff-analytical-note-2015-2/
In 2009, the Bank of Canada set its effective lower bound (ELB) at 25 basis points (bps). Given the recent experience of Sweden, Denmark, Switzerland and the euro area with negative interest rates, we examine the economics of negative interest rates and suggest that cash storage costs are the source of a negative lower bound on interest rates.2015-12-08T10:22:55+00:00enEstimating Canada’s Effective Lower Bound2015-12-08On the Essentiality of E-Money
https://www.bankofcanada.ca/2015/11/staff-working-paper-2015-43/
Recent years have witnessed the advances of e-money systems such as Bitcoin, PayPal and various forms of stored-value cards. This paper adopts a mechanism design approach to identify some essential features of different payment systems that implement and improve the constrained optimal resource allocation.2015-11-20T08:40:57+00:00enOn the Essentiality of E-Money2015-11-20Bank notesDigital currencies and fintechPayment clearing and settlement systemsStaff Working Paper 2015-43https://www.bankofcanada.ca/wp-content/uploads/2015/11/wp2015-43.pdfOn the Essentiality of E-MoneyJonathan ChiuTsz-Nga WongNovember 2015EE4E42E5E58LL5L51Recent Enhancements to the Management of Canada’s Foreign Exchange Reserves
https://www.bankofcanada.ca/wp-content/uploads/2015/11/boc-review-autumn15-merkowsky.pdf
As the size and complexity of the foreign exchange reserves have grown over the years, enhancements to the management framework needed to keep pace. This is a common theme for most reserve managers around the world. In Canada, the enhancements focused on governance, portfolio management, risk measurement and risk management. This article briefly describes these enhancements, why they were implemented and some of the lessons learned along the way.2015-11-19T10:30:39+00:00enRecent Enhancements to the Management of Canada’s Foreign Exchange Reserves2015-11-19Reputational Risk Management in Central Banks
https://www.bankofcanada.ca/2015/11/staff-discussion-paper-2015-16/
This paper discusses reputational risk in the context of central banking and explains why it matters to central banks. It begins with a general discussion of reputational risk within the broader framework of risk management.2015-11-17T09:42:54+00:00enReputational Risk Management in Central Banks2015-11-17CredibilityInternational topicsMonetary policy implementationStaff Discussion Paper 2015-16https://www.bankofcanada.ca/wp-content/uploads/2015/11/dp2015-16.pdfReputational Risk Management in Central BanksJill VardyNovember 2015EE5E52E58Forward Guidance at the Effective Lower Bound: International Experience
https://www.bankofcanada.ca/2015/11/staff-discussion-paper-2015-15/
Forward guidance is one of the policy tools that a central bank can implement if it seeks to provide additional monetary stimulus when it is operating at the effective lower bound (ELB) on interest rates. It became more widely used during and after the global financial crisis.2015-11-13T07:20:17+00:00enForward Guidance at the Effective Lower Bound: International Experience2015-11-13Monetary policy and uncertaintyMonetary policy communicationsMonetary policy frameworkMonetary policy implementationMonetary policy transmissionStaff Discussion Paper 2015-15https://www.bankofcanada.ca/wp-content/uploads/2015/11/dp2015-15.pdfForward Guidance at the Effective Lower Bound: International ExperienceKaryne B. CharbonneauLori RennisonNovember 2015EE4E43E5E52E58E6Quantitative Easing as a Policy Tool Under the Effective Lower Bound
https://www.bankofcanada.ca/2015/11/staff-discussion-paper-2015-14/
This paper summarizes the international evidence on the performance of quantitative easing (QE) as a monetary policy tool when conventional policy rates are constrained by the effective lower bound (ELB). A large body of evidence suggests that expanding the central bank’s balance sheet through large-scale asset purchases can provide effective stimulus under the ELB.2015-11-12T15:21:58+00:00enQuantitative Easing as a Policy Tool Under the Effective Lower Bound2015-11-12Central bank researchInternational topicsMonetary policy frameworkMonetary policy transmissionStaff Discussion Paper 2015-14https://www.bankofcanada.ca/wp-content/uploads/2015/11/dp2015-14.pdfQuantitative Easing as a Policy Tool Under the Effective Lower BoundAbeer RezaEric SantorLena SuchanekNovember 2015EE5E52E58E6E61E65NN1N10The International Experience with Negative Policy Rates
https://www.bankofcanada.ca/2015/11/staff-discussion-paper-2015-13/
A key issue in the renewal of the inflation-control agreement is the question of the appropriate level of the inflation target. Many observers have raised concerns that with the reduction in the neutral rate, and the experience of the recent financial crisis, the effective lower bound (ELB) is more likely to be binding in the future if inflation targets remain at 2 per cent.2015-11-12T13:05:13+00:00enThe International Experience with Negative Policy Rates2015-11-12Central bank researchFinancial marketsInternational topicsMonetary policy frameworkStaff Discussion Paper 2015-13 https://www.bankofcanada.ca/wp-content/uploads/2015/11/dp2015-13.pdfThe International Experience with Negative Policy RatesHarriet JacksonNovember 2015EE5E52E58E6E65The Optimal Level of the Inflation Target: A Selective Review of the Literature and Outstanding Issues
https://www.bankofcanada.ca/2015/10/discussion-paper-2015-8/
Bank of Canada research done prior to the most recent renewal of the inflation-control agreement in 2011 concluded that the benefits associated with a target below 2 per cent were insufficient to justify the increased risk of being constrained by the zero lower bound (ZLB) on nominal interest rates.2015-10-01T10:48:49+00:00enThe Optimal Level of the Inflation Target: A Selective Review of the Literature and Outstanding Issues2015-10-01Inflation targetsInflation: costs and benefitsMonetary policy frameworkDiscussion Paper 2015-8https://www.bankofcanada.ca/wp-content/uploads/2015/10/dp2015-8.pdfThe Optimal Level of the Inflation Target: A Selective Review of the Literature and Outstanding IssuesOleksiy KryvtsovRhys R. MendesOctober 2015EE5E52E58On the Nexus of Monetary Policy and Financial Stability: Recent Developments and Research
https://www.bankofcanada.ca/2015/09/discussion-paper-2015-7/
Because financial and macroeconomic conditions are tightly interconnected, financial stability considerations are an important element of any monetary policy framework. Yet, the circumstances under which it would be appropriate for the Bank to use monetary policy to lean against financial risks need to be more fully specified (Côté 2014).2015-09-28T15:24:52+00:00enOn the Nexus of Monetary Policy and Financial Stability: Recent Developments and Research2015-09-28Financial stabilityMonetary policy frameworkDiscussion Paper 2015-7 https://www.bankofcanada.ca/wp-content/uploads/2015/09/dp2015-7.pdfOn the Nexus of Monetary Policy and Financial Stability: Recent Developments and ResearchOleksiy KryvtsovMiguel MolicoBen TomlinSeptember 2015EE0E4E44E5E52E58GG1G18Quantifying Contagion Risk in Funding Markets: A Model-Based Stress-Testing Approach
https://www.bankofcanada.ca/2015/08/working-paper-2015-32/
We propose a tractable, model-based stress-testing framework where the solvency risks, funding liquidity risks and market risks of banks are intertwined.2015-08-07T11:53:48+00:00enQuantifying Contagion Risk in Funding Markets: A Model-Based Stress-Testing Approach2015-08-07Financial stabilityFinancial system regulation and policiesWorking Paper 2015-32https://www.bankofcanada.ca/wp-content/uploads/2015/08/wp2015-32.pdfQuantifying Contagion Risk in Funding Markets: A Model-Based Stress-Testing ApproachKartik AnandCéline GauthierMoez SouissiAugust 2015CC7C72EE5E58GG0G01G2G21G28