Monetary policy transmission - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T12:12:24+00:00Monetary Policy, Private Debt and Financial Stability Risks
https://www.bankofcanada.ca/2016/12/staff-working-paper-2016-59/
Can monetary policy be used to promote financial stability? We answer this question by estimating the impact of a monetary policy shock on private-sector leverage and the likelihood of a financial crisis. Impulse responses obtained from a panel VAR model of 18 advanced countries suggest that the debt-to-GDP ratio rises in the short run following an unexpected tightening in monetary policy.2016-12-19T13:17:39+00:00enMonetary Policy, Private Debt and Financial Stability Risks2016-12-19Credit and credit aggregatesFinancial stabilityMonetary policyMonetary policy transmissionStaff Working Paper 2016-59https://www.bankofcanada.ca/wp-content/uploads/2016/12/swp2016-59.pdfMonetary Policy, Private Debt and Financial Stability RisksGregory BauerEleonora GranzieraDecember 2016CC2C21C23EE5E52E58Quantitative Easing in a Small Open Economy: An International Portfolio Balancing Approach
https://www.bankofcanada.ca/2016/12/staff-working-paper-2016-55/
This paper studies the effects of quantitative easing (QE) in a small open economy dynamic stochastic general-equilibrium model with international portfolio balancing. Portfolios are classified as imperfectly substitutable short-term and long-term subportfolios, each including domestic and foreign bonds.2016-12-08T14:26:41+00:00enQuantitative Easing in a Small Open Economy: An International Portfolio Balancing Approach2016-12-08International topicsMonetary policy transmissionStaff Working Paper 2016-55https://www.bankofcanada.ca/wp-content/uploads/2016/12/swp2016-55.pdfQuantitative Easing in a Small Open Economy: An International Portfolio Balancing ApproachSerdar KabacaDecember 2016EE5E52FF4F41Comparing Forward Guidance and Neo-Fisherianism as Strategies for Escaping Liquidity Traps
https://www.bankofcanada.ca/2016/12/staff-analytical-note-2016-16/
What path should policy-makers select for the nominal rate when faced with a liquidity trap during which the effective lower bound binds?2016-12-08T10:39:29+00:00enComparing Forward Guidance and Neo-Fisherianism as Strategies for Escaping Liquidity Traps2016-12-08Market Operations and Liquidity Provision at the Bank of Canada
https://www.bankofcanada.ca/wp-content/uploads/2016/11/boc-review-autumn16-guzman.pdf
The Bank of Canada’s framework for market operations and liquidity provision describes how and when central bank liquidity might be offered with regards to the implementation of monetary policy and for supporting the stability of the Canadian financial system. Market participants can therefore plan their transactions knowing that the Bank stands ready to help manage system liquidity to support its objectives for monetary policy and financial stability.2016-11-17T12:01:23+00:00enMarket Operations and Liquidity Provision at the Bank of Canada2016-11-17Monetary Policy Tradeoffs Between Financial Stability and Price Stability
https://www.bankofcanada.ca/2016/11/staff-working-paper-2016-49/
We analyze the impact of interest rate policy on financial stability in an environment where banks can experience runs on their short-term liabilities, forcing them to sell assets at fire-sale prices.2016-11-02T10:51:25+00:00enMonetary Policy Tradeoffs Between Financial Stability and Price Stability2016-11-02Financial stabilityMonetary policy frameworkMonetary policy transmissionStaff Working Paper 2016-49https://www.bankofcanada.ca/wp-content/uploads/2016/11/swp2016-49.pdfMonetary Policy Tradeoffs Between Financial Stability and Price StabilityMalik ShukayevAlexander UeberfeldtNovember 2016DD6D62EE3E32E4E44GG0G01Cross-Border Trade Integration and Monetary Policy
https://www.bankofcanada.ca/wp-content/uploads/2016/09/sdp2016-20.pdf
Governor Stephen S. Poloz discusses global trade integration and the implications for the conduct of monetary policy.2016-09-26T12:27:31+00:00Cross-Border Trade Integration and Monetary Policy2016-09-26Stephen S. PolozOn What States Do Prices Depend? Answers from Ecuador
https://www.bankofcanada.ca/2016/09/staff-working-paper-2016-43/
In this paper, we argue that differences in the cost structures across sectors play an important role in firms’ decisions to adjust their prices. We develop a menu-cost model of pricing in which retail firms intermediate trade between producers and consumers.2016-09-22T15:13:55+00:00enOn What States Do Prices Depend? Answers from Ecuador2016-09-22Inflation and pricesMonetary policy transmissionStaff Working Paper 2016-43https://www.bankofcanada.ca/wp-content/uploads/2016/09/swp2016-43.pdfOn What States Do Prices Depend? Answers from EcuadorCraig BenedictMario J. CruciniAnthony LandrySeptember 2016EE3E5FF3F33A Primer on Neo-Fisherian Economics
https://www.bankofcanada.ca/2016/09/staff-analytical-note-2016-14/
Conventional models imply that central banks aiming to raise inflation should lower nominal rates and thus stimulate aggregate demand. However, several economists have recently challenged this conventional wisdom in favour of an alternative “neo-Fisherian’’ view under which higher nominal rates might in fact lead to higher inflation.2016-09-22T14:53:44+00:00enA Primer on Neo-Fisherian Economics2016-09-22Output Comovement and Inflation Dynamics in a Two-Sector Model with Durable Goods: The Role of Sticky Information and Heterogeneous Factor Markets
https://www.bankofcanada.ca/2016/07/staff-working-paper-2016-36/
In a simple two-sector New Keynesian model, sticky prices generate a counterfactual negative comovement between the output of durable and nondurable goods following a monetary policy shock. We show that heterogeneous factor markets allow any combination of strictly positive price stickiness to generate positive output comovement.2016-07-26T11:08:57+00:00enOutput Comovement and Inflation Dynamics in a Two-Sector Model with Durable Goods: The Role of Sticky Information and Heterogeneous Factor Markets2016-07-26Inflation and pricesMonetary policy transmissionStaff Working Paper 2016-36https://www.bankofcanada.ca/wp-content/uploads/2016/07/swp2016-36.pdfOutput Comovement and Inflation Dynamics in a Two-Sector Model with Durable Goods: The Role of Sticky Information and Heterogeneous Factor MarketsTomiyuki KitamuraTamon TakamuraJuly 2016EE3E31E32E5E52Relationships in the Interbank Market
https://www.bankofcanada.ca/2016/07/staff-working-paper-2016-33/
In the interbank market, banks will sometimes trade below the central bank's deposit rate. We explain this anomaly using a theory based on market frictions and relationship lending.2016-07-22T13:03:12+00:00enRelationships in the Interbank Market2016-07-22Interest ratesMonetary policy implementationMonetary policy transmissionStaff Working Paper 2016-33https://www.bankofcanada.ca/wp-content/uploads/2016/07/swp2016-33.pdfRelationships in the Interbank MarketJonathan ChiuCyril MonnetJuly 2016EE4E5