May 17, 2007
Posts
-
-
May 15, 2007
Government Borrowers Forum
We are all interested in seeing the continued development of international capital markets, as part of the advancement of a market-based, liberalized trade and financial regime. Let's remember that an open, market-based economic system is increasingly vital, in a world where change is driven by the development of new technologies and modes of competition; and where adjustments are occurring all the time. -
Should Central Banks Adjust Their Target Horizons in Response to House-Price Bubbles?
The authors investigate the implications of house-price bubbles for the optimal inflation-target horizon using a dynamic general-equilibrium model with credit frictions, house-price bubbles, and small open-economy features. They find that, given the distribution of shocks and inflation persistence over the past 25 years, the optimal target horizon for Canada tends to be at the lower […] -
Vulnerabilities in Defined-Benefit Pension Plans
An effective pension system enhances economic and financial efficiency. A majority of pension plans in Canada are defined-benefit (DB) plans, but DB plans are under stress from increasing longevity, low long-term interest rates, and the shrinking equity premium. DB plans are vulnerable to such shocks because they are complex financial vehicles, with interdependencies not fully […] -
May 10, 2007
Spring 2007 Consultations Document – Auction Plan for Real Return Bonds
In April 2007, officials from the Department of Finance and the Bank of Canada sought the views of institutional investors, government securities distributors, and other interested parties regarding the auction plan for Real Return Bonds (RRBs). The consultations were undertaken in view of the announcement, in the Debt Management Strategy for 2007/08, of an increase in the issuance of RRBs to slightly over $2 billion. -
May 10, 2007
A Sound Pension System – Handling Risk Appropriately
It goes without saying that a sound system of private pensions is important from the perspective of pensioners who rely on a given plan for their retirement income. For firms, a pension plan can help to attract and retain staff, and so the business community also counts on a sound pension system. -
May 10, 2007
Governor Dodge Discusses Need to Support Canada's Private Pension System
Policy-makers need to make sure that Canada's system of private pensions provides the right incentives for risk to be managed appropriately, Bank of Canada Governor David Dodge said today. -
Implications of New Accounting Standards for the Bank of Canada's Balance Sheet
The Canadian Institute of Chartered Accountants (CICA) has implemented new accounting standards for the valuation and reporting of financial instruments. They are effective for the Bank of Canada in 2007. As a result of these changes, the Bank has begun valuing its holdings of Government of Canada treasury bills on a fair value basis and […] -
May 4, 2007
The Importance of Appropriate Exchange Rate Regimes
Why do I think that such an order is so important? Well, in part it's because history has helped to demonstrate its virtues. But it's also extremely important to bear in mind the context, that is, the world in which we live today. This is a world in which adjustment is perpetual, where change is driven by the development of new technologies, where sectors and nations continually attempt to secure some new advantage. And in this world, price signals from markets help us to understand what adjustments are needed. -
Oil Price Movements and the Global Economy: A Model-Based Assessment
We develop a five-region version (Canada, an oil exporter, the United States, emerging Asia and Japan plus the euro area) of the Global Economy Model (GEM) encompassing production and trade of crude oil, and use it to study the international transmission mechanism of shocks that drive oil prices.