Posts
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March 26, 2012
Bank of Canada Issues $50 Polymer Bank Note
Bank of Canada Governor Mark Carney today officially announced the new $50 polymer bank note’s entry into circulation, during an event at the Canadian Coast Guard’s Québec port facility. These new notes will be available at financial institutions from coast to coast to coast starting today. Governor Carney was joined at the event by Shelly […] -
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March 12, 2012
Promoting Growth, Mitigating Cycles and Inequality: The Role of Price and Financial Stability
Senior Deputy Governor Tiff Macklem discusses how price and financial stability help promote growth and mitigate economic cycles and inequality. -
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A Note on Central Counterparties in Repo Markets
The author introduces a central counterparty (CCP) into a model of a repo market. Without the CCP, there exist multiple equilibria in the model. In one of the equilibria, a repo market emerges as bond dealers and cash investors choose to arrange repos in an over-the-counter bond market. -
When Is It Less Costly for Risky Firms to Borrow? Evidence from the Bank Risk- Taking Channel of Monetary Policy
In an investigation of banks’ loan pricing policies in the United States over the past two decades, this study finds supporting evidence for the bank risk-taking channel of monetary policy. We show that banks charge lower spreads when they lend to riskier borrowers relative to the spreads they charge on loans to safer borrowers in periods of low short-term rates compared to periods of high short-term rates. -
March 8, 2012
Bank of Canada maintains overnight rate target at 1 per cent
The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.