October 31, 2022 Research Update - October 2022 This monthly newsletter features the latest research publications by Bank of Canada economists including external publications and working papers published on the Bank of Canada’s website. Content Type(s): Staff research, Research newsletters
February 26, 2019 Bank of Canada publishes the Canadian Alternative Reference Rate Working Group’s Consultation Paper on Proposed Enhancements to the Canadian Dollar Overnight Repo Rate Average (CORRA) The Bank of Canada, on behalf of the Canadian Alternative Reference Rate Working Group (CARR), has published a consultation on proposed enhancements to the Canadian Overnight Repo Rate Average (CORRA) risk-free interest-rate benchmark. Content Type(s): Press, Market notices Source(s): Canadian Alternative Reference Rate Working Group
November 13, 2014 Spillover Effects of Quantitative Easing on Emerging-Market Economies Bank of Canada Review - Autumn 2014 Robert Lavigne, Subrata Sarker, Garima Vasishtha While quantitative easing (QE) in the United States likely increased capital flows to emerging-market economies (EMEs), putting upward pressure on asset prices and exchange rates, diverging fundamentals between advanced economies and EMEs were also important drivers. Evidence suggests that the benefits of QE to EMEs, in higher global demand and increased confidence, appear to outweigh the costs. When advanced economies begin to normalize monetary policy, the best defence for EMEs against any potential instability is likely to be further strengthening of their macroeconomic and financial policy frameworks. Content Type(s): Publications, Bank of Canada Review articles JEL Code(s): E, E5, E52, E58, F, F3, F32, F4, F41, F42
November 20, 2018 Choosing the Best Monetary Policy Framework for Canada Remarks Carolyn A. Wilkins McGill University Max Bell School of Public Policy Montréal, Quebec Senior Deputy Governor Carolyn A. Wilkins discusses public policy issues around monetary policy frameworks and how those issues have become more complex in the post-global financial crisis world. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Financial system, Financial stability, Monetary policy, Economic models, Economy/Economic growth, Inflation targeting framework
The Global Financial Cycle, Monetary Policies and Macroprudential Regulations in Small, Open Economies Staff working paper 2016-38 Gregory Bauer, Gurnain Pasricha, Rodrigo Sekkel, Yaz Terajima This paper analyzes the implications of the global financial cycle for conventional and unconventional monetary policies and macroprudential policy in small, open economies such as Canada. The paper starts by summarizing recent work on financial cycles and their growing correlation across borders. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E42, E43, E44, E5, E52, F, F4, F41 Research Theme(s): Financial system, Financial stability and systemic risk, Household and business credit, Monetary policy, Monetary policy tools and implementation, Structural challenges, International trade, finance and competitiveness
Implementation and Effectiveness of Extended Monetary Policy Tools: Lessons from the Literature Staff discussion paper 2020-16 Grahame Johnson, Sharon Kozicki, Romanos Priftis, Lena Suchanek, Jonathan Witmer, Jing Yang This paper summarizes the literature on the performance of various extended monetary policy tools when conventional policy rates are constrained by the effective lower bound. We highlight issues that may arise when these tools are used by central banks of small open economies. Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E5, E52, E58, E6, E63 Research Theme(s): Monetary policy, Monetary policy framework and transmission, Monetary policy tools and implementation
Best Before? Expiring Central Bank Digital Currency and Loss Recovery Staff working paper 2021-67 Charles M. Kahn, Maarten van Oordt, Yu Zhu We consider introducing an expiry date for offline digital currency balances. Consumers whose digital cash expired would automatically receive the funds back into their online account. This functionality could increase demand for digital cash, with the time to expiry playing a key role. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E41, E42 Research Theme(s): Money and payments, Digital assets and fintech, Payment and financial market infrastructures
January 31, 2023 2022 Annual Retrospective Newsletter Starting this year, we will be using the January issue of our newsletter to look back at our research activities over the past year and to celebrate the achievements of our colleagues. Content Type(s): Staff research, Research newsletters
A Blueprint for the Fourth Generation of Bank of Canada Projection and Policy Analysis Models Staff discussion paper 2023-23 Donald Coletti The fourth generation of Bank of Canada projection and policy analysis models seeks to improve our understanding of inflation dynamics, the supply side of the economy and the underlying risks faced by policy-makers coming from uncertainty about how the economy functions. Content Type(s): Staff research, Staff discussion papers JEL Code(s): C, C5, C50, C51, C52, C53, C54, C55 Research Theme(s): Models and tools, Economic models, Monetary policy, Inflation dynamics and pressures, Monetary policy framework and transmission, Real economy and forecasting
Central Bank Crisis Interventions: A Review of the Recent Literature on Potential Costs Staff discussion paper 2023-30 Patrick Aldridge, David Cimon, Rishi Vala Central banks’ actions to stabilize financial markets and implement monetary policy during crises may come with costs and side effects. We provide a literature review of these costs and discuss measures that may mitigate the negative impacts of crisis actions. Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E5, E58, G, G1, G10, G2, G20 Research Theme(s): Financial system, Financial stability and systemic risk, Monetary policy, Monetary policy tools and implementation