Césaire Meh - Latest

• Leverage, Balance Sheet Size and Wholesale Funding

  Staff Working Paper 2010-39 H. Evren Damar, Césaire Meh, Yaz Terajima

  Some evidence points to the procyclicality of leverage among financial institutions leading to aggregate volatility. This procyclicality occurs when financial institutions finance their assets with non-equity funding (i.e., debt financed asset expansions). Wholesale funding is an important source of market-based funding that allows some institutions to quickly adjust their leverage.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial stability, Financial system regulation and policies, Recent economic and financial developments JEL Code(s): G, G2, G21, G28
• August 19, 2010

  Should Monetary Policy Be Used to Counteract Financial Imbalances?

  Bank of Canada Review - Summer 2010 Jean Boivin, Césaire Meh, Timothy Lane

  The authors examine whether monetary policy should and could do more to lean against financial imbalances (such as those associated with asset-price bubbles or unsustainable credit expansion) as they are building up, or whether its role should be limited to cleaning up the economic consequences as the imbalances unwind.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Financial system regulation and policies, Monetary policy framework