November 13, 1998
Find Bank of Canada research by keyword, author, content type, JEL code, topic or date of publication.
Receive notification by email whenever new research is added to the website.
2334
result(s)
November 12, 1998
The LVTS—Canada's Large-Value Transfer System
The LVTS is an electronic network for sending and receiving large-value payments. It is expected to become operational in the first half of 1999. Major chartered banks and other large deposit-taking institutions will provide access to the system for their clients in the financial, corporate and government sectors. Canada’s LVTS exceeds world standards for risk control in large-value systems. The author explains how this is achieved through the netting, bilateral and multilateral credit limits, collateral, and loss-sharing procedures used in the event of a default, and, as a last resort, a guarantee by the Bank of Canada. The LVTS gives participating institutions certainty of settlement for their LVTS positions every day, even if one or more participants default. This greatly reduces systemic risk in the financial system. Moreover, the LVTS supports finality of payment; that is, it makes funds unconditionally and irrevocably available to the receiver. Finality is highly desirable when the amount of the payment is substantial, or when exact timing is critical. Since the LVTS will carry the great majority of the value of all payments in Canada, it should be considered the core of the national payments system.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Payment clearing and settlement systems
November 11, 1998
A primer on the implementation of monetary policy in the LVTS environment
The author summarizes the objectives and key elements of the framework that the Bank will use to implement monetary policy under the new payments system. The article includes a comparison of the key features of the pre-LVTS framework with that to be used in the LVTS environment. It also features a glossary of terms with respect to the Bank's monetary policy operations.
Content Type(s):
Publications,
Bank of Canada Review articles
Topic(s):
Monetary policy implementation,
Payment clearing and settlement systems
Evaluating Alternative Measures of the Real Effective Exchange Rate
Staff Working Paper 1998-20
Robert Lafrance,
Patrick Osakwe,
Pierre St-Amant
This paper discusses the merits and shortcomings of alternative price indices used in constructing real effective exchange rate indices and examines the effects of different weighting schemes. It also compares selected measures of the real effective exchange rate in terms of their ability to explain movements in Canadian net exports and real output. The paper […]
Content Type(s):
Staff research,
Staff working papers
Can a Matching Model Explain the Long-Run Increase in Canada's Unemployment Rate?
Staff Working Paper 1998-19
Andreas Hornstein,
Mingwei Yuan
The authors construct a simple general equilibrium model of unemployment and calibrate it to the Canadian economy. Job creation and destruction are endogenous. In this model, they consider several potential factors that could contribute to the long-run increase in the Canadian unempoloyment rate: a more generous unemployment insurance system, higher layoff costs, higher discretionary taxes, […]
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Fiscal policy,
Labour markets
JEL Code(s):
E,
E2,
E6,
J,
J4
The Sale of Durable Goods by a Monopolist in a Stochastic Environment
Staff Working Paper 1998-18
Gabriel Srour
This paper examines the sale of durable goods by a monopolist in a stochastic partil equilibrium setting. It analyzes the responses of prices and output to various types of shocks and notes the differences with non-durable goods and competitive markets. It shows that behavior in this model with constant marginal costs of production is in […]
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Market structure and pricing
JEL Code(s):
D,
D4
La politique monétaire a-t-elle des effets asymétriques sur l'emploi?
Staff Working Paper 1998-17
Lise Pichette
Several economists, including Cover (1992), Ammer and Brunner (1995), Macklem, Paquet, and Phaneuf (1996), have worked over the past few years to determine whether monetary policy shocks have asymmetric effects on output. These authors have generally found that negative monetary shocks tend to reduce output growth significantly, and that positive shocks generally have a weaker […]
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Monetary policy transmission
JEL Code(s):
E,
E5
Consumer Attitudes, Uncertainty, and Consumer Spending
Staff Working Paper 1998-16
Denise Côté,
Marianne Johnson
This study examines the link between consumer expenditures and the Conference Board's Index of Consumer Attitudes, an index highly regarded for some time as a useful leading indicator of consumer expenditures. However, the theory that identifies why it may be useful in an analysis of consumption is less well established. To explore this question, we […]
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Domestic demand and components,
Economic models
JEL Code(s):
D,
D1,
D12,
E,
E2
On the Believable Benefits of Low Inflation
Staff Working Paper 1998-15
Christopher Ragan
This paper reviews the existing theoretical and empirical literature addressing the benefits of low inflation. The ultimate goal is to arrive at a set of benefits in which a monetary authority can have genuine confidence. I argue that the current state of economic research—both empirical and theoretical—provides little basis for believing in significant observable benefits […]
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation: costs and benefits
JEL Code(s):
E,
E3,
E31
Non-Linearities in the Output-Inflation Relationship: Some Empirical Results for Canada
Staff Working Paper 1998-14
Chantal Dupasquier,
Nicholas Ricketts
This paper analyzes the short-run dynamic process of inflation in Canada and examines whether a systematic variation in the relationship between inflation and output can be detected over time. In the theoretical literature, different models of price-setting behaviour predict that the slope of the Phillips curve will be a function of macroeconomic conditions, implying a […]
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation: costs and benefits,
Productivity