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3827 Results

February 24, 2012

Flexible Inflation Targeting Appropriate Framework for All Seasons, Says Bank of Canada Governor Mark Carney

In a speech today to the U.S. Monetary Policy Forum, Bank of Canada Governor Mark Carney reviewed the advantages of Canada’s flexible inflation-targeting regime. Citing a “complex and continuously evolving world that no one can predict with certainty,” Governor Carney said that flexible inflation targeting “provides a robust framework for all seasons.” A flexible inflation-targeting […]
Content Type(s): Press, Press releases
June 17, 2008

A Tool for Assessing Financial Vulnerabilities in the Household Sector

In this article, the authors build on the framework used in the Bank of Canada's Financial System Review to assess the evolution of household indebtedness and financial vulnerabilities in response to changing economic conditions. To achieve this, they first compare two microdata sets generated by Ipsos Reid's Canadian Financial Monitor and Statistics Canada's Survey of Financial Security. They find that the surveys are broadly comparable, despite methodological differences. This enables them to use the combined information content for the identification of the threshold value of the debt-service ratio (DSR). The article then presents an innovative framework that uses household-level microdata to simulate changes in the distribution of the DSR under various stress scenarios. The authors show how this framework can be used by analyzing the effects of two different scenarios on the distribution of the debt-service ratio and the impact on vulnerable households. This tool will enable researchers to refine their analyses of current risks to the financial health of Canadian households. The article concludes with comments on future directions for refining the Bank's analyses of household sector risk.

Saving after Retirement and Preferences for Residual Wealth

Staff working paper 2024-21 Giulio Fella, Martin B. Holm, Thomas Michael Pugh
We estimate a model of households in Norway with bequest motives, health-dependent utility, and uncertain longevity and health. Our estimates imply strong bequest motives for households both with and without offspring. We interpret this as suggestive evidence that utility from residual wealth represents forces beyond an altruistic bequest motive.
September 30, 2015

Changes to the Bank of Canada’s Framework for Financial Market Operations

On 5 May, 2015, the Bank of Canada published a consultation paper outlining proposed changes to its framework for financial market operations. Interested parties were invited to provide comments, and the Bank also held a series of meetings with industry associations and other stakeholders. Summary of comments received Respondents were supportive of the overall direction […]
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