April 16, 2007
Business Outlook Survey - Spring 2007
All indicators of business activity (future sales, expected employment, and investment intentions) have increased relative to the previous survey.
Posts
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April 16, 2007
Clarifications to the Terms of Participation in Auctions for Government Securities Distributors
The Department of Finance and the Bank of Canada have updated the "Terms of Participation in Auctions for Government Securities Distributors." -
April 15, 2007
Renewing the International Monetary Fund: A Review of the Issues
Given the rapid and ongoing integration of the global economy, the International Monetary Fund needs to renew its role, governance structure, and functions if it is to maintain its relevance as the institution charged with promoting global financial stability. Lecavalier and Santor examine the areas of possible reform, including quota, voice, and representation; internal governance; surveillance; lending instruments; finances; and the Fund's role in low-income countries. They also review current Bank of Canada research that supports these reform efforts, including an integrated framework for IMF surveillance recently developed at the Bank. -
April 14, 2007
The Canadian Overnight Market: Recent Evolution and Structural Changes
Since 1997 when the Bank of Canada last published a review of the Canadian overnight market, several important changes have affected the market's structure and dynamics. Reid provides a current overview of the market, examining the financial instruments, market transparency and flows, and the collateralized overnight rate as it has evolved since the introduction of the Large Value Transfer System and the fixed announcement dates. Other significant influences include changes in market practices regarding risk management, the rise of securities lending, the increased demand for collateral, and the Bank of Canada's measures to reinforce the target for the overnight rate. -
April 14, 2007
Bank of Canada Review - Spring 2007
Cover page
Gas Cards
All gas cards pictured here are part of the National Currency Collection of the Bank of Canada.
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April 13, 2007
The Large-Value Payments System: Insights from Selected Bank of Canada Research
Given the Bank of Canada's strong interest in the safe and efficient operation of major clearing and settlement systems, the Bank maintains a rigorous research agenda as a means of informing payments system policy and oversight. In this article, Arjani and Engert review recent research undertaken by Bank staff concerning the risk and efficiency of the Large Value Transfer System (LVTS). Based on the findings from this research, the authors conclude that the design of the LVTS strikes an effective balance between risk and efficiency. The article also demonstrates the increased use of simulation analysis as a tool for conducting payments system research. A brief summary of the Bank's oversight strategy for systemically important payments systems is also provided. Goals for future research are noted as well, including modelling of participant behaviour and continued external collaboration with other researchers. -
April 12, 2007
Addition of Two Government Securities Distributors for Government of Canada Securities
The Bank of Canada, on behalf of the Government of Canada, announces the addition of two new Government Securities Distributors for Government of Canada marketable bonds and treasury bills. -
April 12, 2007
Dealing with Uncertainty in the Conduct of Monetary Policy
The main goal of monetary policy is to help the country achieve strong, sustainable economic performance, and, in doing so, to contribute to rising living standards for Canadians. Experience has shown that the best way for a central bank to meet this goal, given the instruments at its disposal, is by keeping inflation low and stable. Low and stable inflation increases confidence in the future value of money, and allows for clear price signals. -
April 11, 2007
Changes in the release times for both the call for tenders for cash-management bills (CMBs) and the preliminary International Securities Identification Numbers (ISINs) for regular treasury bills
In the Debt Management Strategy 2007/08, the government announced that the release time for call for tenders for cash-management bills (CMBs) will be moved from 10:00 (ET) to 09:45 (ET). Effective 16 April 2007, CMBs call for tenders issued on or after this date will be released at 09:45 (ET). The auction timetable can be found on the Bank of Canada website. -
Term Structure Transmission of Monetary Policy
Under bond-rate transmission of monetary policy, the authors show that a generalized Taylor Principle applies, in which the average anticipated path of policy responses to inflation is subject to a lower bound of unity. This result helps explain how bond rates may exhibit stable responses to inflation, even in periods of passive policy.