Banks, Credit Market Frictions, and Business Cycles
The author proposes a micro-founded framework that incorporates an active banking sector into a dynamic stochastic general-equilibrium model with a financial accelerator.
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October 21, 2010
Bank of Canada Warns of Email Scams
The Bank of Canada has become aware of email scams that send unsolicited emails falsely claiming to originate from the Bank of Canada. -
October 20, 2010
Release of the Monetary Policy Report
The global economic recovery is entering a new phase. In advanced economies, temporary factors supporting growth in 2010, such as the inventory cycle and pent-up demand, have largely run their course and fiscal stimulus will shift to fiscal consolidation over the projection horizon. -
October 20, 2010
Monetary Policy Report – October 2010
The global economic recovery is entering a new phase. In advanced economies, temporary factors supporting growth in 2010 - such as the inventory cycle and pent-up demand - have largely run their course and fiscal stimulus will shift to fiscal consolidation over the projection horizon. -
October 19, 2010
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. -
Central Bank Haircut Policy
We present a model of central bank collateralized lending to study the optimal choice of the haircut policy. We show that a lending facility provides a bundle of two types of insurance: insurance against liquidity risk as well as insurance against downside risk of the collateral. -
October 8, 2010
Business Outlook Survey - Autumn 2010
Responses to the autumn survey suggest that the economic recovery is progressing. Firms remain positive about the outlook over the next 12 months, but they generally expect growth to be modest, owing in part to a weaker outlook for the U.S. economy.
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October 5, 2010
Reflections on Monetary Policy After the Great Recession
As a native Montrealer, I am particularly pleased to be coming home to deliver my first speech as Senior Deputy Governor of the Bank of Canada. -
September 30, 2010
Employment in a Modest Recovery
Insights from financial markets are somewhat fleeting at the moment. A broad range of asset prices from the Canadian dollar to S&P500 futures to European sovereign spreads are unusually correlated and volatile. -
Liquidity, Risk, and Return: Specifying an Objective Function for the Management of Foreign Reserves
An objective function is a key component of a strategic portfolio management model used to determine the optimal allocations of assets and, possibly, their associated liabilities over some investment horizon.