Dinah Maclean was appointed Managing Director of the Corporate Services Department (CS) in February 2014. In this capacity, she is responsible for the Bank’s Data and Statistics Office (DSO), Knowledge and Information Services, and Security and Facilities Management functions, including plans for continuity of operations. Ms. Maclean brings to this position a breadth of leadership experience from previous roles in the economics departments, DSO and CS.
Ms. Maclean has more than 20 years of experience at the Bank in its monetary policy and financial system functions, in increasingly senior positions. These have included Deputy Managing Director of the former Monetary and Financial Analysis Department and Director of the Data and Statistics Office. Prior to her current appointment, Ms. Maclean was Deputy Managing Director of Corporate Services.
Ms. Maclean is from Ottawa, Ontario. She has a BA and an MA in economics from the University of Canterbury, Christchurch, New Zealand.
As the ultimate provider of Canadian-dollar liquidity to the financial system, the Bank of Canada has the unique capacity to create Canadian-dollar claims on the central bank and the power to make secured loans or advances to chartered banks and other members of the Canadian Payments Association. The Bank supplies overnight credit on a routine basis through the Standing Liquidity Facility (SLF) to direct participants in the Large Value Transfer System, and Emergency Lending Assistance (ELA) to solvent deposit-taking institutions that require more substantial and prolonged credit. The authors review the policy framework that guides the Bank's lender-of-last-resort function, including the key issues, terms and conditions, and eligibility criteria associated with its SLF and ELA activities. Also discussed are foreign currency ELA, the relationship between SLF and ELA, systemic risk and Bank of Canada intervention, and the potential provision of liquidity to major clearing and settlement systems.
In recent years, there has been a lot of interest in Taylor-type rules. Evidence in the literature suggests that Taylor-type rules are optimal in a number of models and are fairly robust across different models.
In recent years, the Bank has put renewed emphasis on analyzing monetary variables and on developing models that incorporate money as an active part of the transmission mechanism. In this article, Dinah Maclean describes how the monetary aggregates are used in the formulation of monetary policy analysis at the Bank, outlining the key tools and models used.
The most important money-based model currently in use is the M1-VECM. In this model, deviations in the money supply from the long-term demand for money cause changes in inflation. The author briefly describes the "active-money" paradigm underlying this model and explains the key equations within it.
Other simpler empirical models are also outlined, including single-equation indicator models for output based on the narrow aggregates, a neural network, and a model based on the broader aggregate M2++. A detailed technical annex provides details on model equations and coefficient values.