February 16, 2023 No two ways about it: Why the Bank is committed to getting back to 2% Remarks Paul Beaudry Alberta School of Business Edmonton, Alberta Deputy Governor Paul Beaudry discusses the benefits of being near the Bank’s 2% inflation target and the dangers of straying from it for too long. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Exchange rates, Inflation targets
February 16, 2023 Opening Statement before the House of Commons Standing Committee on Finance Opening statement Tiff Macklem House of Commons Standing Committee on Finance Ottawa, Ontario Content Type(s): Press, Speeches and appearances, Opening statements
February 16, 2023 Parliamentary Appearance by the Governor and the Senior Deputy Governor of the Bank of Canada On Thursday, February 16, 2023, the Governor of the Bank of Canada, Tiff Macklem, will appear before the House of Commons Standing Committee on Finance. Content Type(s): Press, Media advisories
February 14, 2023 About the Bank’s interest earnings The Bank of Canada’s balance sheet reflects the unique role it plays as Canada’s central bank. It is different from the balance sheets of other financial institutions—the assets and liabilities on the Bank’s balance sheet are intended to support its core functions rather than to generate profit. Content Type(s): Background materials
The Role of Intermediaries in Selection Markets: Evidence from Mortgage Lending Staff Working Paper 2023-12 Jason Allen, Robert Clark, Jean-François Houde, Shaoteng Li, Anna Trubnikova This paper looks at the role mortgage brokers play in helping borrowers generate quotes and qualify for credit. We find that, on average, borrowers that engage with a mortgage broker pay lower interest rates. However, in about 15% of cases, borrowers are steered towards longer amortizing mortgages than they would have chosen absent a broker. Since mortgages with longer amortization have higher total interest costs over the entire life of the mortgage, this steering is expensive. Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial services, Market structure and pricing JEL Code(s): D, D4, G, G2, G21, L, L2
Inflation, Output, and Welfare in the Laboratory Staff Working Paper 2023-11 Janet Hua Jiang, Daniela Puzzello, Cathy Zhang We investigate the effect of inflation on output and welfare in the laboratory. Consistent with monetary theory, we find that inflation acts as a tax on monetary exchange and reduces output and welfare. Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices, Inflation: costs and benefits, Monetary policy JEL Code(s): C, C9, C92, D, D8, D83, E, E4, E40