Posts

• A Framework for Analyzing Monetary Policy in an Economy with E-money

  Staff Working Paper 2019-1 Yu Zhu, Scott Hendry

  This paper considers an economy where central-bank-issued fiat money competes with privately issued e-money. We study a policy-setting game between the central bank and the e-money issuer and find (1) the optimal monetary policy of the central bank depends on the policy of the private issuer and may deviate from the Friedman rule; (2) multiple equilibria may exist; (3) when the economy approaches a cashless state, the central bank’s optimal policy improves the market power of the e-money issuer and can lead to a discrete decrease in welfare and a discrete increase in inflation; and (4) first best cannot be achieved.

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

• The Secular Decline of Forecasted Interest Rates

  Staff Analytical Note 2019-1 Bruno Feunou, Jean-Sébastien Fontaine

  Canadian interest rates show a secular decline since the 1980s. Long-term survey-based forecasts of interest rates also declined, but less so and were more gradual. Our model-based estimates show an endpoint shifting over time in three phases: a decline between 1990 and 1995, a period of stability between 1996 and 2007, and a further decline since 2008. The current endpoint estimate remains clouded with uncertainty; this is an active area of research.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Financial markets, Interest rates JEL Code(s): E, E4, E43, G, G1, G12
• January 10, 2019

  Bank of Canada publishes the Canadian Alternative Reference Rate Working Group principles for enhancements to fallback language

  The Bank of Canada today published the Canadian Alternative Reference Rate Working Group (CARR) principles for enhancements to fallback language for cash products.

  Content Type(s): Press, Market notices Source(s): Canadian Alternative Reference Rate Working Group
• January 9, 2019

  Monetary Policy Report Press Conference Opening Statement

  Opening statement Stephen S. Poloz Ottawa, Ontario

  Governor Stephen S. Poloz discusses key issues involved in the Governing Council’s deliberations about the policy rate decision and the MPR.

  Content Type(s): Press, Speeches and appearances, Opening statements
• January 9, 2019

  Bank of Canada maintains overnight rate target at 1 ¾ per cent

  Media Relations Ottawa, Ontario

  The Bank of Canada today maintained its target for the overnight rate at 1 ¾ per cent. The Bank Rate is correspondingly 2 per cent and the deposit rate is 1 ½ per cent.

  Content Type(s): Press, Press releases
• January 9, 2019

  Monetary Policy Report – January 2019

  

  The Bank projects that Canadian economic growth will slow to 1.7 per cent this year before rebounding to 2.1 per cent in 2020.

  Content Type(s): Publications, Monetary Policy Report
• December 31, 2018

  Research Update - December 2018

  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
• December 31, 2018

  Summary of Government of Canada - Outstanding as at 31 December 2018

  Content Type(s): Publications, Historical: Securities and loans
• December 21, 2018

  Business Outlook Survey—Winter 2018

  Results from the winter Business Outlook Survey continue to indicate positive business sentiment and elevated capacity pressures in most regions. For firms in the Prairies, the outlook has weakened.

  Content Type(s): Publications, Business Outlook Survey
• December 21, 2018

  Senior Loan Officer Survey—Fourth Quarter of 2018

  Overall household lending conditions were unchanged this quarter, although mortgage approval rates were lower. More widespread easing of business lending conditions continues to be driven by competition for corporate borrowers.

  Content Type(s): Publications, Senior Loan Officer Survey