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Repo markets are crucial for the functioning of government bond markets. They are also an important source of short-term funding. But their size and widespread use mean they can transmit financial stress if conditions deteriorate.

Deputy Governor Sylvain Leduc discusses the decline in firm creation and productivity in the Canadian economy.

In addition to its primary role as the country's central bank, the Bank of Canada also acts as the federal government's banker and financial adviser. One of the activities associated with this role as fiscal agent is managing the government's Canadian dollar balances. This function is examined in this article. The main priority is to ensure that the government has sufficient cash to meet its daily needs. This requires careful forecasting and monitoring of the government's daily receipt and expenditure flows, as well as an ongoing borrowing program to refinance maturing debt and to replenish the balances during periods when outflows, on average, exceed inflows. The cost of borrowing to raise cash balances for the government is considerably higher than the interest earned on any balances that are available "on demand." To reduce this net cost, balances in excess of those required for daily needs are invested in "term" deposits that earn a higher rate of interest than that earned on the demand balances. The net cost of holding government balances has also been reduced through the use of cash management bills, which are flexible, short-term borrowing instruments that complement the government's regular weekly issues of 3-, 6- and 12-month treasury bills.

Technology can enhance efficiency and help create new jobs, but challenges like automation's impact on employment also need careful consideration and proactive solutions.

At the Bank of Canada, we’re pleased to offer awards for research papers by students and by staff.

The Market Participants Survey results are based on questionnaire responses from about 30 financial market participants.

Quarterly Financial Report - Third Quarter 2016 - For the period ended 30 September 2016

Quarterly Financial Report - Second Quarter 2016 - For the period ended 30 June 2016

Quarterly Financial Report - Third Quarter 2017 - For the period ended September 30, 2017

The dramatic growth in China's exports of consumer goods such as clothing, toys, and electronics, and imports of primary commodities such as oil and metals is having major effects on global supply and demand. In examining China's role in global relative price changes, Francis finds that downward pressure on the relative prices of consumer goods is likely to persist as China's large labour supply continues its migration into manufacturing. Likewise, China's size and growth will also remain key drivers of global commodities demand for some time. Despite these forces, inflation-targeting central banks have the tools to keep inflation close to target, thus offsetting any persistent upward or downward inflationary pressure.