Uncategorized

• March 6, 2007

  Bank of Canada keeps target for the overnight rate at 4 1/4 per cent

  Media Relations Ottawa, Ontario

  The Bank of Canada today announced that it is maintaining its target for the overnight rate at 4 1/4 per cent.

  Content Type(s): Press, Press releases

• Perhaps the FOMC Did What It Said It Did: An Alternative Interpretation of the Great Inflation

  Staff Working Paper 2007-19 Sharon Kozicki, P. A. Tinsley

  This paper uses real-time briefing forecasts prepared for the Federal Open Market Committee (FOMC) to provide estimates of historical changes in the design of U.S. monetary policy and in the implied central-bank target for inflation. Empirical results support a description of policy with an effective inflation target of roughly 7 percent in the 1970s.

  Content Type(s): Staff research, Staff working papers Topic(s): Central bank research, Monetary aggregates, Monetary policy implementation JEL Code(s): E, E3, E5, N, N1

• World Real Interest Rates: A Global Savings and Investment Perspective

  Staff Working Paper 2007-16 Brigitte Desroches, Michael Francis

  Over the past 15 years, long-term interest rates have declined to levels not seen since the 1970s. This paper explores possible shifts in global savings and investment that have led to this fall in the world real interest rate.

  Content Type(s): Staff research, Staff working papers Topic(s): Interest rates, International topics JEL Code(s): E, E2, E4, F, F3
• February 22, 2007

  Adjusting to Economic Change

  Remarks Sheryl Kennedy Greater Saskatoon Chamber of Commerce Saskatoon, Saskatchewan

  The past five years have indeed been a period of great and relatively rapid economic change, both here in Saskatchewan and across the country. In my remarks today, I'd like to describe this change and discuss its significance to our economic well-being.

  Content Type(s): Press, Speeches and appearances, Remarks
• February 20, 2007

  Standing Senate Committee on National Finance

  Remarks Paul Jenkins Standing Senate Committee on National Finance Ottawa, Ontario

  The preamble of this bill addresses some very important issues: the need for Canadians to trust in the management of the public purse, and the importance of openness and accountability. I can assure you that the Bank of Canada takes these issues very seriously.

  Content Type(s): Press, Speeches and appearances, Remarks
• February 15, 2007

  Temporary measures to reinforce the target for the overnight rate

  On 9 March 2006, the Bank of Canada announced temporary measures to reinforce its target for the overnight rate. Specifically, the Bank announced that it would reduce the target for settlement balances to zero and, on a temporary basis, no longer commit to neutralizing all of the Sale and Repurchase Agreements (SRAs) conducted.

  Content Type(s): Press, Market notices

• Uncollateralized Overnight Loans Settled in LVTS

  Staff Working Paper 2007-11 Scott Hendry, Nadja Kamhi

  Loan-level data on the uncollateralized overnight loan market is generated using payment data from Canada's Large Value Transfer System (LVTS) and a modified version of the methodology proposed in Furfine (1999). There were on average just under 100 loans extended in this market each day from March 2004 to March 2006 for a total daily value of about $5 billion.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial markets, Interest rates JEL Code(s): E, E4, E44, E5, E50, G, G1, G12
• February 6, 2007

  Promoting Stability, Confidence and Well-being

  Remarks David Longworth Greater Kitchener Waterloo Chamber of Commerce Waterloo, Ontario

  The strengths of the twin cities - in research, advanced manufacturing, and information technology, among other sectors - are well known. Less well known, perhaps, is the region's success in responding effectively to changes in the world economy.

  Content Type(s): Press, Speeches and appearances, Remarks

• Monetary Policy Committees in Action: Is There Room for Improvement?

  Staff Working Paper 2007-6 Philipp Maier

  More than 80 central banks use a committee to take monetary policy decisions. The composition of the committee and the structure of the meeting can affect the quality of the decision making.

  Content Type(s): Staff research, Staff working papers Topic(s): Central bank research, Monetary policy framework JEL Code(s): C, C9, C92, D, D7, D70, E, E5, E58

• Time-Consistent Control in Non-Linear Models

  Staff Working Paper 2007-3 Steve Ambler, Florian Pelgrin

  We show how to use optimal control theory to derive optimal time-consistent Markov-perfect government policies in nonlinear dynamic general equilibrium models, extending the result of Cohen and Michel (1988) for models with quadratic objective functions and linear dynamics. We replace private agents' costates by flexible functions of current states in the government's maximization problem.

  Content Type(s): Staff research, Staff working papers Topic(s): Fiscal policy, Monetary policy framework JEL Code(s): C, C6, C63, E, E6, E61, E62