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8781 Results

Monetary Policy Under Okun’s Hypothesis

Staff working paper 2026-3 Felipe Alves, Giovanni L. Violante
The current monetary policy framework of the Fed intends to be more ’inclusive’ by running the economy hot for longer during expansions.

The Value of Mortgage Choice: Payment Structure and Contract Length

Staff working paper 2026-2 Michael Boutros, Nuno Clara, Katya Kartashova
We study household mortgage choice in a model with three mortgage contracts that differ in their payment structures: fixed-rate fixed-payment, variable-rate variable-payment, and a hybrid variable-rate fixed-payment mortgage where interest rate changes affect principal repayment rather than payment size. We calibrate the model to match mortgage choice patterns in Canada, where all these options are offered with short terms. We demonstrate that restricting contract choice or mandating long terms, as in the U.S. system, can lead to substantial welfare losses by limiting risk management strategies and increasing mortgage pricing ex-ante.
March 2, 2026

Canada’s monetary policy framework in a world of supply-driven trade-offs

Remarks Sharon Kozicki Norges Bank Monetary Policy Mandate Conference Oslo, Norway
Deputy Governor Sharon Kozicki discusses the challenges of setting monetary policy in a world where supply-side developments are important drivers of inflation.
February 27, 2026

Bank of Canada issues revised compliance order to XTM Inc.

The Bank of Canada today issued a revised temporary order to XTM Inc. (XTM). The Bank has authorized XTM to recommence retail payment activities under the supervision of the Monitor appointed today by the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act, and subject to terms and conditions set out in the Bank's revised order.
Content Type(s): Press, Press releases Subject(s): Retail payments supervision

What typically happens before households fall behind on mortgage payments

Sparks at Bank article Laura Zhao, Jia Qi Xiao
Canadians usually pay their mortgages on time. But some fall behind on mortgage payments. Before they do, homeowners often increase their use of credit cards and lines of credit, and then fall behind on those payments.
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