November 1, 2008
Uncategorized
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October 31, 2008
Bank of Canada Announces Term PRA Transactions for Private Sector Money Market Instruments
In accordance with the 14 October 2008 announcement of new measures to provide liquidity to the Canadian financial system, the Bank of Canada announced today that it will enter into 14-day term purchase and resale agreement (PRA) for private sector money market instruments on the following dates: -
McCallum Rules, Exchange Rates, and the Term Structure of Interest Rates
McCallum (1994a) proposes a monetary rule where policymakers have some tendency to resist rapid changes in exchange rates to explain the forward premium puzzle. -
October 27, 2008
Bank of Canada to Sell Treasury Bills for Balance Sheet Management Purposes
The Bank of Canada announced today it will sell $1.85 billion of its holdings of treasury bills. This transaction will partially offset the temporary increase in assets associated with the term purchase and resale transactions announced today. -
October 27, 2008
Bank of Canada Announces Details of its 28 Day Term PRA Transaction
In accordance with the schedule of Term PRA auctions announced on 3 October, the Bank of Canada announced today that it will enter into a 28-day Purchase and Resale Agreement (PRA) transaction as follows: -
Which Bank is the "Central" Bank? An Application of Markov Theory to the Canadian Large Value Transfer System
We use a method similar to Google's PageRank procedure to rank banks in the Canadian Large Value Transfer System (LVTS). Along the way we obtain estimates of the payment processing speeds for the individual banks. -
Financial Constraints and the Cash-Holding Behaviour of Canadian Firms
The proportion of assets held by the average Canadian firm in the form of cash has increased steadily since the early 1990s, and is now roughly twice as large as in 1990. The literature has established that the cash-holding behaviour of firms is highly correlated with financial constraints and firm characteristics. -
The Canadian Dollar and Commodity Prices: Has the Relationship Changed over Time?
The authors examine the impact of the recent run-up in energy and non-energy commodity prices on the Canadian dollar. Using the Bank of Canada's exchange rate equation, they find that the differences between the actual value of the Canadian exchange rate and the simulated values observed in 2007 are not historically large. Still, given that […] -
October 23, 2008
Release of the Monetary Policy Report
In Canada, our financial system is sound, and our financial institutions are already well capitalized. We are nonetheless affected by global developments. That is why the Bank of Canada has taken extraordinary measures to provide liquidity. -
October 23, 2008
Monetary Policy Report – October 2008
Three major interrelated global developments are having a profound impact on the Canadian economy and making the outlook more uncertain than it was at the time of the July Monetary Policy Report Update.