Posts
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Central Bank Liquidity Policy in Modern Times
Across several dimensions of lender of last resort policy, I highlight broad changes that have occurred since the 2008–09 global financial crisis and discuss some of the key challenges, choices and considerations facing the designers of central bank liquidity tools today. -
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June 19, 2024
Release of the Bank of Canada’s summary of deliberations
On Wednesday, June 19, 2024, the Bank of Canada will publish a summary of the deliberations that took place ahead of its interest rate decision on June 5, 2024. -
June 19, 2024
Summary of Governing Council deliberations: Fixed announcement date of June 5, 2024
This is an account of the deliberations of the Bank of Canada’s Governing Council leading to the monetary policy decision on June 5, 2024. -
June 19, 2024
What you pay for at the pump
Several factors help set gasoline prices: the costs of crude oil, refining, transporting, retailing and marketing gas, as well as taxes. -
Impacts of interest rate hikes on the consumption of households with a mortgage
We assess how much the recent rate-hike cycle has and will affect mortgage borrowers' consumption through its impacts on mortgage payments. Our analysis provides insights into the effects of changes in monetary policy on the consumption of mortgage borrowers. -
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Non-Parametric Identification and Testing of Quantal Response Equilibrium
We show that the utility function and the error distribution are non-parametrically over-identified under Quantal Response Equilibrium (QRE). This leads to a simple test for QRE. We illustrate our method in a Monte Carlo exercise and a laboratory experiment. -
Demand for Canadian Banknotes from International Travel: Indirect Evidence from the COVID-19 Pandemic
This study uses the COVID-19 travel restrictions to estimate foreign demand for Canadian banknotes. It reveals that international visitors accounted for about 10% of all $100 CAD notes in circulation pre-pandemic, with each visitor carrying an average of $165 in hundred-dollar bills.