Uncategorized

• November 16, 1998

  Release of the Monetary Policy Report

  Opening statement Gordon Thiessen

  This morning we released our eighth Monetary Policy Report. The period since our last report has certainly been an eventful one from a monetary policy perspective. During the past six months, global economic uncertainties intensified, particularly following Russia's decision in August to declare a debt moratorium. Many emerging market countries were faced with large capital […]

  Content Type(s): Press, Speeches and appearances, Opening statements
• November 12, 1998

  The LVTS—Canada's Large-Value Transfer System

  Bank of Canada Review - Autumn 1998 James Dingle

  The LVTS is an electronic network for sending and receiving large-value payments. It is expected to become operational in the first half of 1999. Major chartered banks and other large deposit-taking institutions will provide access to the system for their clients in the financial, corporate and government sectors. Canada’s LVTS exceeds world standards for risk control in large-value systems. The author explains how this is achieved through the netting, bilateral and multilateral credit limits, collateral, and loss-sharing procedures used in the event of a default, and, as a last resort, a guarantee by the Bank of Canada. The LVTS gives participating institutions certainty of settlement for their LVTS positions every day, even if one or more participants default. This greatly reduces systemic risk in the financial system. Moreover, the LVTS supports finality of payment; that is, it makes funds unconditionally and irrevocably available to the receiver. Finality is highly desirable when the amount of the payment is substantial, or when exact timing is critical. Since the LVTS will carry the great majority of the value of all payments in Canada, it should be considered the core of the national payments system.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Payment clearing and settlement systems
• October 27, 1998

  Opening Statement before the House of Commons Standing Committee on Finance

  Opening statement Gordon Thiessen House of Commons Standing Committee on Finance

  Mr. Chairman, I am pleased to appear before you today as part of your study of the Task Force Report on the Future of the Canadian Financial Services Sector. Perhaps it might be helpful if I were to start by clarifying the Bank of Canada’s role in this area. The Bank has no formal responsibility […]

  Content Type(s): Press, Speeches and appearances, Opening statements
• October 16, 1998

  Bank Rate Lowered by ¼ Percentage Point to 5½ Per Cent

  Media Relations Ottawa, Ontario

  The Bank of Canada today lowered its Bank Rate by ¼ of one percentage point to 5½ per cent.

  Content Type(s): Press, Press releases
• October 15, 1998

  The Canadian Experience with Targets for Inflation Control

  Remarks Gordon Thiessen Queen's University Kingston, Ontario

  As an economist who worked as a banker for most of his career, Douglas Gibson brought an interesting perspective to public policy issues, to the relationship between government and business, and to the contribution of outside economists to government policies.

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

• Can a Matching Model Explain the Long-Run Increase in Canada's Unemployment Rate?

  Staff Working Paper 1998-19 Andreas Hornstein, Mingwei Yuan

  The authors construct a simple general equilibrium model of unemployment and calibrate it to the Canadian economy. Job creation and destruction are endogenous. In this model, they consider several potential factors that could contribute to the long-run increase in the Canadian unempoloyment rate: a more generous unemployment insurance system, higher layoff costs, higher discretionary taxes, […]

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Fiscal policy, Labour markets JEL Code(s): E, E2, E6, J, J4
• September 29, 1998

  Survey of Foreign Exchange and Derivatives Market Activity in Canada

  Robert Ogrodnick Ottawa, Ontario

  Summary results of a survey of Canadian foreign exchange and derivatives markets are now available. The survey was conducted by the Bank of Canada in April 1998 and covered activity in the foreign exchange and derivatives markets. Similar surveys were undertaken by about 40 other countries during the same month, and the central banks of many of those countries are also releasing their results today.

  Content Type(s): Press, Press releases
• September 29, 1998

  Bank Rate Lowered by ¼ Percentage Point to 5¾ Per Cent

  Media Relations Ottawa, Ontario

  The Bank of Canada today lowered its Bank Rate by ¼ of one percentage point to 5¾ per cent.

  Content Type(s): Press, Press releases
• September 23, 1998

  Global uncertainties and the Canadian economy

  Remarks Gordon Thiessen St. John's Board of Trade St. John's, Newfoundland

  This past year, we have had to deal with the implications for our economy and our currency of increased global uncertainty and pressures arising from the problems that originated in Southeast Asia. I am sure that the effects of these developments, especially on primary commodities, such as oil and nickel, are already very familiar to Newfoundlanders.

  Content Type(s): Press, Speeches and appearances, Remarks
• August 27, 1998

  Bank Rate Raised by 1 Percentage Point

  Media Relations Ottawa, Ontario

  The Bank of Canada today raised its Bank Rate by one percentage point to 6 per cent.

  Content Type(s): Press, Press releases