Settlement Balances Deconstructed Staff Discussion Paper 2022-13 Parnell Chu, Grahame Johnson, Scott Kinnear, Karen McGuinness, Matthew McNeely Because of the COVID-19 pandemic, public interest in the Bank’s balance sheet and, more specifically, the size of settlement balances, has grown. This paper deconstructs the concept of settlement balances and provides some context on their history, current state and possible future evolution. Content Type(s): Staff research, Staff discussion papers Topic(s): Central bank research, Coronavirus disease (COVID-19), Financial markets, Monetary policy implementation JEL Code(s): E, E5, E58, E59, E6, G, G0, G01
June 7, 2022 CORRA Advisory Group Meeting (June 7, 2022) Content Type(s): Meetings Source(s): CORRA Advisory Group
Foreign Exchange Interventions: The Long and the Short of It Staff Working Paper 2022-25 Patrick Alexander, Sami Alpanda, Serdar Kabaca This paper studies the effects of foreign exchange (FX) interventions in a two-region model where governments issue both short- and long-term bonds. We find that the term premium channel dominates the trade balance channel in our calibrated model. As a result, the conventional beggar-thy-neighbor effects of interventions are overturned. Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Exchange rate regimes, Exchange rates, Foreign reserves management, International financial markets, International topics JEL Code(s): F, F3, F31, F33, F4, F41
June 6, 2022 Understanding quantitative easing QE is a tool that encourages spending and investment—helping us to achieve our inflation target by stabilizing the economy. Content Type(s): Explainers Topic(s): Inflation targets, Monetary policy
June 6, 2022 Financial System Survey highlights—Spring 2022 This article presents the key results from the spring 2022 Bank of Canada Financial System Survey, conducted between February 22 and March 18. The survey included a special section on the potential risks associated with the global normalization of monetary policy. Content Type(s): Publications, Financial System Survey
June 3, 2022 Canadian Alternative Reference Rate Working Group: Key documents Find key documents and reference material related to the Canadian Alternative Reference Rate Working Group (CARR).
June 2, 2022 Bank of Canada Media Interview – Zone économie Paul Beaudry, Deputy Governor of the Bank of Canada, gave an interview to Radio-Canada’s Gérald Fillion. The interview will air today on Zone économie. Please check local listings or go to https://ici.radio-canada.ca/ for more information. Content Type(s): Press, Media advisories
June 2, 2022 Economic progress report: Navigating a high inflation environment Remarks (delivered virtually) Paul Beaudry Gatineau Chamber of Commerce Gatineau, Quebec Bank of Canada Deputy Governor Paul Beaudry talks about the Bank’s latest interest rate announcement and the importance of keeping inflation expectations well anchored to prevent high inflation from becoming entrenched. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Credibility, Expectations, Inflation and prices, Inflation targets, Interest rates, Monetary policy, Monetary policy and uncertainty, Monetary policy implementation, Price stability, Recent economic and financial developments