Posts

• Are Bank Bailouts Welfare Improving?

  Staff Working Paper 2021-56 Malik Shukayev, Alexander Ueberfeldt

  Financial sector bailouts, while potentially beneficial during a crisis, might lead to excessive risk taking if anticipated. Taking expectations and aggregate risk implications into account, we show that bailouts can be welfare improving, but only if capital adequacy constraints are sufficiently tight.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial stability, Financial system regulation and policies JEL Code(s): D, D6, D62, E, E3, E32, E4, E44, G, G0, G01
• November 8, 2021

  Operational details for upcoming secondary market purchases of Government of Canada securities (November 15-26)

  As previously announced, the Bank of Canada (the Bank) launched on April 1, 2020 a program to purchase Government of Canada securities in the secondary market – the Government Bond Purchase Program (GBPP).

  Content Type(s): Press, Market notices Source(s): Government of Canada Bond Purchase Program
• November 8, 2021

  Question Period on CTV

  

  Tiff Macklem, Governor of the Bank of Canada
  Interview with Question Period on CTV

  Content Type(s): Press, Media activities
• November 8, 2021

  2021 Bank of Canada Annual Economic Conference: Behavioral Macroeconomics and Finance: Implications for Central Bankers

  Conference held on November 8 to 10, 2021.

  Content Type(s): Conferences and workshops
• November 8, 2021

  Quarterly Financial Report - Third Quarter 2021

  Quarterly Financial Report - Third Quarter 2021 - For the period ended September 30, 2021

  Content Type(s): Publications, Quarterly Financial Report

• Optimal Monetary Policy According to HANK

  Staff Working Paper 2021-55 Sushant Acharya, Edouard Challe, Keshav Dogra

  We study optimal monetary policy in an analytically tractable Heterogeneous Agent New Keynesian model. In the model, the central bank has an incentive to reduce consumption inequality in addition to keeping economic activity at its efficient level and inflation stable.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Monetary policy JEL Code(s): E, E2, E21, E3, E30, E5, E52, E6, E62, E63

• Evaluating the Effects of Forward Guidance and Large-scale Asset Purchases

  Staff Working Paper 2021-54 Xu Zhang

  I propose a novel method to identify and estimate the macroeconomic effects of forward guidance and large-scale asset purchases (LSAP) for each FOMC announcement. I find that LSAP is more important than forward guidance in influencing output and inflation. LSAP puts upward pressure on short-term yields, so it should always be used in conjunction with forward guidance.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Central bank research, Econometric and statistical methods, Interest rates JEL Code(s): E, E5, G, G0
• November 3, 2021

  Bank of Canada announces climate change commitments for COP26

  Media Relations Ottawa, Ontario

  Addressing climate change is a global challenge. While the Government of Canada has the primary responsibility for climate change policy, the Bank of Canada recognizes the importance of including climate change considerations in its work to promote the economic and financial welfare of Canadians.

  Content Type(s): Press, Press releases Topic(s): Climate change
• October 31, 2021

  Research Update - October 2021

  This monthly newsletter features the latest research publications by Bank of Canada economists including external publications and working papers published on the Bank of Canada’s website.

  Content Type(s): Staff research, Research newsletters
• October 29, 2021

  Operational details for upcoming secondary market purchases of Government of Canada securities (November 1-12)

  As previously announced, the Bank of Canada (the Bank) launched on April 1, 2020 a program to purchase Government of Canada securities in the secondary market – the Government Bond Purchase Program (GBPP).

  Content Type(s): Press, Market notices Source(s): Government of Canada Bond Purchase Program