October 20, 2009
Posts
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October 19, 2009
Results of the 19 October 2009 Term PRA Transaction
The results of today's term PRA operations are as follows. -
October 16, 2009
Bank of Canada Announces Details of its Final Term Loan Facility Operations
In accordance with the 22 September Bank of Canada announcement that the Term Loan Facility (TLF) auctions will expire at the end of October, the Bank announced today the details of the final two TLF operations. -
October 16, 2009
Bank of Canada Announces Details of its Final Term PRA for Private Sector Instruments Operations
In accordance with the 22 September Bank of Canada announcement that the term purchase and resale agreement (PRA) auctions for private sector instruments will expire at the end of October, the Bank announced today the details of the final two term PRA operations for private sector instruments. -
October 16, 2009
Bank of Canada Announces Details of its Term PRA Operation
In accordance with the schedule of term purchase and resale agreement (PRA) auctions announced on 21 July (see schedule), the Bank of Canada announced today that it will conduct a term PRA operation as follows. -
Cross-border Mergers and Hollowing-out
The purpose of our paper is to examine the profitability and social desirability of both domestic and foreign mergers in a location-quantity competition model, where we allow for the possibility of hollowing-out of the target firm. We refer to hollowing-out as the situation where the target firm is shut down following a merger with a domestic or foreign acquirer. -
Exchange Rate Pass-through and Monetary Policy: How Strong is the Link?
Several authors have presented reduced-form evidence suggesting that the degree of exchange rate pass-through to the consumer price index has declined in Canada since the early 1980s and is currently close to zero. -
Bond Liquidity Premia
Recent asset pricing models of limits to arbitrage emphasize the role of funding conditions faced by financial intermediaries. In the US, the repo market is the key funding market. Then, the premium of on-the-run U.S. Treasury bonds should share a common component with risk premia in other markets. -
Risk Premium Shocks and the Zero Bound on Nominal Interest Rates
There appears to be a disconnect between the importance of the zero bound on nominal interest rates in the real-world and predictions from quantitative DSGE models. Recent economic events have reinforced the relevance of the zero bound for monetary policy whereas quantitative models suggest that the zero bound does not constrain (optimal) monetary policy. -
Consumption, Housing Collateral, and the Canadian Business Cycle
Using Bayesian methods, we estimate a small open economy model in which consumers face limits to credit determined by the value of their housing stock. The purpose of this paper is to quantify the role of collateralized household debt in the Canadian business cycle.