Posts

• June 11, 1998

  The outlook for the Canadian economy and monetary policy

  Remarks Bernard Bonin The Canadian Association of Financial Planners Québec, Québec

  In mid-May we published our semi-annual Report on monetary policy, covering data up to April 24th. That means we now have new data available for the last two months. Furthermore, our report also pointed to a much greater-than-usual degree of uncertainty about the outlook for the Canadian economy.

  Content Type(s): Press, Speeches and appearances, Remarks
• May 28, 1998

  Opening Statement before the House of Commons Standing Committee on Finance

  Opening statement Gordon Thiessen House of Commons Standing Committee on Finance

  Mr. Chairman, my colleagues and I are pleased to appear before your committee on a regular basis following the release of the Bank of Canada's Monetary Policy Report. It gives us a chance to discuss with you a range of economic and monetary issues. More generally, our semi-annual Report and sessions such as this one […]

  Content Type(s): Press, Speeches and appearances, Opening statements
• May 27, 1998

  Globalized Financial Markets and Monetary Policy

  Remarks Gordon Thiessen La Conférence de Montréal Montréal, Quebec

  Globalization - that is, the growing integration and interdependence of national economies - is changing dramatically the economic landscape. Countries are trading more goods and services, an increasing number of firms now operate across national borders, and savers and borrowers have greater access than ever before to global financial markets.

  Content Type(s): Press, Speeches and appearances, Remarks
• May 27, 1998

  Bank of Canada Governor speaks at La Conférence de Montréal

  Media Relations

  In a speech delivered today to delegates to La Conférence de Montréal, Bank of Canada Governor Gordon Thiessen examined the impact of financial market globalization on the world economy.

  Content Type(s): Press, Press releases
• May 14, 1998

  Recent developments in the monetary aggregates and their implications

  Bank of Canada Review - Spring 1998

  This article examines the developments in the monetary aggregates over the course of 1997 and their implications for future economic activity. The narrow aggregate, M1, grew rapidly in the first half of 1997 but slowed somewhat during the second half of the year. Much of the strong growth in this aggregate over the last several years has been associated with a higher demand for transactions balances as interest rates declined and economic activity revived. There were some special factors at play, however, that are discussed in the article. The Bank expects some slowing in M1 growth through 1998 and into 1999. This would be consistent with a trend of inflation within the inflation-control target range of 1 to 3 per cent over the next couple of years. Growth in the broad aggregate, M2+, continued to be distorted by the shift of savings out of fixed-term deposits into mutual funds. A broader aggregate that includes M2+, CSBs, and all mutual funds and thus provides a better estimate of broad money growth, grew at a moderate pace during 1997. The recent behaviour of the broad monetary aggregates continues to suggest that inflation will remain low in coming years.

  Content Type(s): Publications, Bank of Canada Review articles
• May 14, 1998

  Bank of Canada Review - Spring 1998

  

  Cover page

  Papal Testone of Innocent XI

  Called a testone, this silver coin is about the size of a Canadian two-dollar piece and forms part of the National Currency Collection at the Bank of Canada.

  Photography by James Zagon.

  Content Type(s): Publications, Bank of Canada Review
• May 13, 1998

  Canada-U.S. long-term interest differentials in the 1990s

  Bank of Canada Review - Spring 1998 Kevin Clinton

  Long-term Canada-U.S. interest spreads have changed remarkably during the 1990s. The unusually wide spreads of the first half of the decade have given way to an unprecedented run of negative yield differentials. In this article, the author examines the conceptual aspects of yields on international assets and their application to the Canada-U.S. situation. Prior to 1995, investors were unsure that, over the long run, inflation would meet the targets set by the government and the Bank. Policy credibility was undermined by large budget deficits and political uncertainty. In the second half of the decade, confidence was re-established as the fiscal positions of governments improved, long-run price stability became established, and political concerns about Quebec lessened. As long as these fundamentals hold, long-term rates should remain relatively low, even when short-term rates rise.

  Content Type(s): Publications, Bank of Canada Review articles
• May 13, 1998

  Monetary Policy Report – May 1998

  Canada’s inflation-control targets establish a specific medium-term objective for monetary policy.

  Content Type(s): Publications, Monetary Policy Report
• May 13, 1998

  Release of the Monetary Policy Report

  Opening statement Gordon Thiessen

  This morning we released our seventh Monetary Policy Report. Since the release of our last Report in November, there have been an unusual number of international and domestic developments which have had important economic and financial consequences. Among the most important events have been the crisis in Asia, declines in commodities prices, and the persistent […]

  Content Type(s): Press, Speeches and appearances, Opening statements
• May 13, 1998

  Bank of Canada Governor comments on release of the Monetary Policy Report

  Media Relations

  Bank of Canada Governor Gordon Thiessen today commented on the release of the semi-annual Monetary Policy Report, which discusses current economic trends and their implications for monetary policy.

  Content Type(s): Press, Press releases