The Optimum Quantity of Central Bank Reserves Staff Working Paper 2025-15 Jonathan Witmer This paper analyzes the optimal quantity of central bank reserves in an economy where reserves and other financial assets provide liquidity benefits. Using a static model, I derive a constrained Friedman rule that characterizes the socially optimal level of reserves, demonstrating that this quantity is neither necessarily large nor small but depends on the marginal benefits of reserves relative to alternative safe assets. Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions, Financial markets, Financial system regulation and policies, Monetary policy implementation JEL Code(s): E, E4, E41, E42, E5, E58, G, G2, G21, G28
May 23, 2025 Bank of Canada Media Interview – The New York Times Tiff Macklem, Governor of the Bank of Canada, gave an interview to Alan Rappeport and Ian Austen of the The New York Times. Content Type(s): Press, Media advisories
May 22, 2025 Conference on Fixed Income Research and Implications for Monetary Policy The Bank of Canada, the Federal Reserve Bank of Chicago, and the Federal Reserve Bank of San Francisco are hosting the 9th bi-annual conference on Fixed Income Research and Implications for Monetary Policy, to be held in San Francisco on May 22-23, 2025. Content Type(s): Conferences and workshops
May 22, 2025 Bank of Canada Media Interview – The Globe and Mail Tiff Macklem, Governor of the Bank of Canada, gave an interview to Mark Rendell of the Globe and Mail, which will be published online and in the newspaper. Content Type(s): Press, Media advisories
May 20, 2025 Frequently asked questions about retail payments supervision Answers to common questions about retail payments supervision.
May 20, 2025 Bank of Canada Museum announces 2025 recipients of Award for Excellence in Teaching Economics Media Relations Ottawa, Ontario The Bank of Canada Museum is proud to announce the recipients of its 2025 Award for Excellence in Teaching Economics. Content Type(s): Press, Press releases
May 20, 2025 How to complete a notice of significant change or new activity: A step-by-step guide This guide explains the questions you will need to answer in PSP Connect and helps identify the documents and information you will need to complete and submit a notice of significant change or new activity to the Bank. Content Type(s): Retail payments supervision materials, Guides Research Topic(s): Reporting, Supervision
May 20, 2025 How to complete an incident notice: A step-by-step guide This guide explains the questions you will need to answer in PSP Connect and helps identify the documents and information you will need to complete and submit an incident notice to the Bank. Content Type(s): Retail payments supervision materials, Guides Research Topic(s): Reporting, Supervision
May 9, 2025 Release of the 2024 Bank of Canada FMI Oversight Activities Annual Report The Bank of Canada today published the Bank of Canada Oversight Activities for Financial Market Infrastructures 2024 Annual Report. Content Type(s): Press, Market notices