Posts

• March 23, 2021

  Market stress relief: The role of the Bank of Canada’s balance sheet

  Remarks (delivered virtually) Toni Gravelle CFA Society Toronto Toronto, Ontario

  Deputy Governor Toni Gravelle discusses actions taken by the Bank of Canada to respond to market-wide stresses during the COVID-19 pandemic and the Bank’s role as lender of last resort in the financial system.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Coronavirus disease (COVID-19), Financial institutions, Financial markets, Financial system regulation and policies, Lender of last resort, Monetary policy
• March 22, 2021

  Operational details for upcoming secondary market purchases of Government of Canada securities (March 29-April 9)

  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

• Secular Economic Changes and Bond Yields

  Staff Working Paper 2021-14 Bruno Feunou, Jean-Sébastien Fontaine

  We investigate the economic forces behind the secular decline in bond yields. Before the anchoring of inflation in the mid-1990s, nominal shocks drove inflation, output and bond yields. Afterward, the impacts of nominal shocks were much less significant.

  Content Type(s): Staff research, Staff working papers Topic(s): Asset pricing, Econometric and statistical methods, Interest rates, Monetary policy and uncertainty, Potential output JEL Code(s): E, E4, E43, G, G1, G12

• Debt-Relief Programs and Money Left on the Table: Evidence from Canada's Response to COVID-19

  Staff Working Paper 2021-13 Jason Allen, Robert Clark, Shaoteng Li, Nicolas Vincent

  During the COVID-19 pandemic, Canadian financial institutions offered debt-relief programs to help borrowers cope with job losses and economic insecurity. We consider the low take-up rates for these programs and suggest that to be effective, such programs must be visible and easy to use.

  Content Type(s): Staff research, Staff working papers Topic(s): Coronavirus disease (COVID-19), Credit and credit aggregates, Debt management JEL Code(s): G, G3, G31, H, H5
• March 15, 2021

  Bank of Canada announces the recipients of the 2021 Fellowship Program Awards

  Learn about the recipients of the Fellowship and Governor’s Awards for 2021.

  Content Type(s): Press, Announcements Source(s): Fellowship Program

• Complementarities Between Fiscal Policy and Monetary Policy—Literature Review

  Staff Discussion Paper 2021-4 Wei Dong, Geoffrey R. Dunbar, Christian Friedrich, Dmitry Matveev, Romanos Priftis, Lin Shao

  This paper surveys and summarizes the literature on how fiscal policy and monetary policy can complement each other in stabilizing economic activity.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Fiscal policy, Monetary policy JEL Code(s): E, E5, E52, E58, E6, E62, E63
• March 12, 2021

  Bank of Canada announces changes to securities repo operations

  In line with its objectives to support core funding markets and to foster the well-functioning of the Government of Canada securities market, the Bank of Canada is announcing changes to securities repo operations (SROs).

  Content Type(s): Press, Market notices Source(s): Securities Repo Operations

• Imperfect Banking Competition and Macroeconomic Volatility: A DSGE Framework

  Staff Working Paper 2021-12 Jiaqi Li

  How do banks adjust their loan rate markup in response to macroeconomic shocks?

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Financial institutions, Interest rates JEL Code(s): E, E3, E32, E4, E44, G, G2, G21, L, L1, L13

• A Generalized Endogenous Grid Method for Default Risk Models

  Staff Working Paper 2021-11 Youngsoo Jang, Soyoung Lee

  Models with default options are hard to solve. We propose an extension of the endogenous grid method that solves default risk models more efficiently and accurately.

  Content Type(s): Staff research, Staff working papers Topic(s): Credit and credit aggregates, Credit risk management JEL Code(s): C, C6, C63, E, E3, E37

• Monetary Policy Pass-Through with Central Bank Digital Currency

  Staff Working Paper 2021-10 Janet Hua Jiang, Yu Zhu

  Many central banks are considering issuing a central bank digital currency (CBDC). This would introduce a new policy tool—interest on CBDC. We investigate how this new tool would interact with traditional monetary policy tools, such as the interest on central bank reserves.

  Content Type(s): Staff research, Staff working papers Topic(s): Digital currencies and fintech, Monetary policy transmission JEL Code(s): E, E5, E50, E52