Uncategorized

• March 26, 2012

  Bank Note Launch

  Remarks Mark Carney Québec, Québec

  Governor Mark Carney announces the launch of the new $50 bank note.

  Content Type(s): Press, Speeches and appearances, Remarks
• March 26, 2012

  Bank of Canada Issues $50 Polymer Bank Note

  Media Relations Ottawa, Ontario

  Bank of Canada Governor Mark Carney today officially announced the new $50 polymer bank note’s entry into circulation, during an event at the Canadian Coast Guard’s Québec port facility. These new notes will be available at financial institutions from coast to coast to coast starting today. Governor Carney was joined at the event by Shelly […]

  Content Type(s): Press, Press releases Research Topic(s): Bank notes
• March 12, 2012

  Promoting Growth, Mitigating Cycles and Inequality: The Role of Price and Financial Stability

  Remarks Tiff Macklem Brazil-Canada Chamber of Commerce São Paulo, Brazil

  Senior Deputy Governor Tiff Macklem discusses how price and financial stability help promote growth and mitigate economic cycles and inequality.

  Content Type(s): Press, Speeches and appearances, Remarks

• A Note on Central Counterparties in Repo Markets

  Staff Discussion Paper 2012-4 Hajime Tomura

  The author introduces a central counterparty (CCP) into a model of a repo market. Without the CCP, there exist multiple equilibria in the model. In one of the equilibria, a repo market emerges as bond dealers and cash investors choose to arrange repos in an over-the-counter bond market.

  Content Type(s): Staff research, Staff discussion papers Research Topic(s): Financial markets, Financial stability, Payment clearing and settlement systems JEL Code(s): G, G2, G24

• When Is It Less Costly for Risky Firms to Borrow? Evidence from the Bank Risk- Taking Channel of Monetary Policy

  Staff Working Paper 2012-10 Teodora Paligorova, João Santos

  In an investigation of banks’ loan pricing policies in the United States over the past two decades, this study finds supporting evidence for the bank risk-taking channel of monetary policy. We show that banks charge lower spreads when they lend to riskier borrowers relative to the spreads they charge on loans to safer borrowers in periods of low short-term rates compared to periods of high short-term rates.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions, Monetary policy framework JEL Code(s): G, G2, G21
• March 8, 2012

  Bank of Canada maintains overnight rate target at 1 per cent

  Media Relations Ottawa, Ontario

  The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

  Content Type(s): Press, Press releases

• Central Bank Communication or the Media’s Interpretation: What Moves Markets?

  Staff Working Paper 2012-9 Scott Hendry

  The goal of this paper is to investigate what type of information from Bank of Canada communication statements or the market commentary based on these statements has a significant effect on the volatility or level of returns in a short-term interest rate market.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Asset pricing, Financial markets JEL Code(s): E, E5, E58, G, G1, G14

• A Framework to Assess Vulnerabilities Arising from Household Indebtedness Using Microdata

  Staff Discussion Paper 2012-3 Ramdane Djoudad

  Rising levels of household indebtedness have created concerns about the vulnerabilities of households to adverse economic shocks and the impact on financial stability. To assess these risks, the author presents a formal stress-testing framework that uses microdata to simulate how various economic shocks affect the distribution of the debt-service ratio (DSR) for the household sector.

  Content Type(s): Staff research, Staff discussion papers Research Topic(s): Econometric and statistical methods, Financial stability JEL Code(s): C, C1, C15, C3, C31, D, D1, D14, E, E5, E51

• Macroprudential Rules and Monetary Policy when Financial Frictions Matter

  Staff Working Paper 2012-6 Jeannine Bailliu, Césaire Meh, Yahong Zhang

  This paper examines the interaction between monetary policy and macroprudential policy and whether policy makers should respond to financial imbalances. To address this issue, we build a dynamic general equilibrium model that features financial market frictions and financial shocks as well as standard macroeconomic shocks.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Economic models, Financial markets, Financial stability, Monetary policy framework JEL Code(s): E, E4, E42, E5, E50, E6, E60
• February 24, 2012

  A Monetary Policy Framework for All Seasons

  Remarks Mark Carney U.S. Monetary Policy Forum New York, New York

  Governor Mark Carney reviews the advantages of Canada’s flexible inflation-targeting regime.

  Content Type(s): Press, Speeches and appearances, Remarks