Posts

• July 31, 2018

  Bank of Canada publishes its 2019 schedule for policy interest rate announcements, the release of the Monetary Policy Report, the Business Outlook Survey and the Senior Loan Officer Survey

  Media Relations Ottawa, Ontario

  The Bank of Canada today published its 2019 schedule for policy interest rate announcements and the release of the quarterly Monetary Policy Report, and reconfirmed the scheduled interest rate announcement dates for the remainder of this year.

  Content Type(s): Press, Press releases
• July 31, 2018

  Research Update - July 2018

  This monthly newsletter features the latest research publications by Bank of Canada economists including external publications and working papers published on the Bank of Canada’s website.

  Content Type(s): Staff research, Research newsletters

• Time-Consistent Management of a Liquidity Trap with Government Debt

  Staff Working Paper 2018-38 Dmitry Matveev

  This paper studies optimal discretionary monetary and fiscal policy when the lower bound on nominal interest rates is occasionally binding in a model with nominal rigidities and long-term government debt. At the lower bound it is optimal for the government to temporarily reduce debt.

  Content Type(s): Staff research, Staff working papers Topic(s): Fiscal policy, Monetary policy JEL Code(s): E, E5, E52, E6, E62, E63

• The Extensive Margin of Trade and Monetary Policy

  Staff Working Paper 2018-37 Yuko Imura, Malik Shukayev

  This paper studies the effects of monetary policy shocks on firms’ participation in exporting. We develop a two-country dynamic stochastic general equilibrium model in which heterogeneous firms make forward-looking decisions on whether to participate in the export market and prices are staggered across firms and time.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Economic models, Firm dynamics, International topics, Monetary policy JEL Code(s): E, E5, E52, F, F1, F12, F4, F44

• Central Bank Digital Currency and Monetary Policy

  Staff Working Paper 2018-36 Mohammad Davoodalhosseini

  Many central banks are contemplating whether to issue central bank digital currency. This piece explores the implications as well as potential motivators of such a step.

  Content Type(s): Staff research, Staff working papers Topic(s): Digital currencies and fintech, Monetary policy JEL Code(s): E, E4, E42, E5, E50

• Prudential Liquidity Regulation in Banking—A Literature Review

  Staff Discussion Paper 2018-8 Adi Mordel

  Prudential liquidity requirements are a relatively recent regulatory tool on the international front, introduced as part of the Basel III accord in the form of a liquidity coverage ratio (LCR) and a net stable funding ratio (NSFR). I first discuss the rationale for regulating bank liquidity by highlighting the market failures that it addresses while reviewing key theoretical contributions to the literature on the motivation for prudential liquidity regulation.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Financial institutions, Financial system regulation and policies JEL Code(s): G, G2, G21, G28

• The Impact of Government Debt Supply on Bond Market Liquidity: An Empirical Analysis of the Canadian Market

  Staff Working Paper 2018-35 Jeffrey Gao, Jianjian Jin, Jacob Thompson

  This paper finds that Government of Canada benchmark bonds tend to be more illiquid over the subsequent month when there is a large increase in government debt supply. The result is both statistically and economically significant, stronger for the long-term than the short-term sector, and is robust when other macro factors are controlled for.

  Content Type(s): Staff research, Staff working papers Topic(s): Asset pricing, Debt management, Financial markets JEL Code(s): D, D5, D53, G, G1, G12, G18, G2, G3, G32
• July 23, 2018

  Historical Assets Eligible as Collateral under the Bank of Canada’s Standing Liquidity Facility – July 23, 2018 to July 28, 2019

  The Bank of Canada (the Bank), through its Standing Liquidity Facility (SLF), provides access to liquidity to those institutions that participate directly in the Large Value Transfer System (LVTS).

  Content Type(s): Collateral Policy Source(s): Standing Liquidity Facility
• July 23, 2018

  Changes to Assets Eligible as Collateral under the Bank of Canada’s (the Bank) Standing Liquidity Facility

  As part of an ongoing review of the Bank’s collateral policy related to the Standing Liquidity Facility (SLF), the Bank is announcing several changes to the assets accepted as collateral under its SLF.

  Content Type(s): Press, Market notices
• July 23, 2018

  CARR Meeting (July 23, 2018)

  Content Type(s): Meetings Source(s): Canadian Alternative Reference Rate Working Group