August 21, 2018
Posts
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Nowcasting Canadian Economic Activity in an Uncertain Environment
This paper studies short-term forecasting of Canadian real GDP and its expenditure components using combinations of nowcasts from different models. Starting with a medium-sized data set, we use a suite of common nowcasting tools for quarterly real GDP and its expenditure components. -
August 15, 2018
RCMP’s E Division wins Bank of Canada counterfeit prevention award
The Bank of Canada congratulates the Integrated Counterfeit Enforcement Team from British Columbia’s Federal Serious and Organized Crime branch, E Division—Financial Integrity. They are the winners of the 2018 Law Enforcement Award of Excellence for Counterfeit Deterrence. -
July 31, 2018
Bank of Canada publishes its 2019 schedule for policy interest rate announcements, the release of the Monetary Policy Report, the Business Outlook Survey and the Senior Loan Officer Survey
The Bank of Canada today published its 2019 schedule for policy interest rate announcements and the release of the quarterly Monetary Policy Report, and reconfirmed the scheduled interest rate announcement dates for the remainder of this year. -
July 31, 2018
Research Update - July 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. -
Time-Consistent Management of a Liquidity Trap with Government Debt
This paper studies optimal discretionary monetary and fiscal policy when the lower bound on nominal interest rates is occasionally binding in a model with nominal rigidities and long-term government debt. At the lower bound it is optimal for the government to temporarily reduce debt. -
The Extensive Margin of Trade and Monetary Policy
This paper studies the effects of monetary policy shocks on firms’ participation in exporting. We develop a two-country dynamic stochastic general equilibrium model in which heterogeneous firms make forward-looking decisions on whether to participate in the export market and prices are staggered across firms and time. -
Central Bank Digital Currency and Monetary Policy
Many central banks are contemplating whether to issue central bank digital currency. This piece explores the implications as well as potential motivators of such a step. -
Prudential Liquidity Regulation in Banking—A Literature Review
Prudential liquidity requirements are a relatively recent regulatory tool on the international front, introduced as part of the Basel III accord in the form of a liquidity coverage ratio (LCR) and a net stable funding ratio (NSFR). I first discuss the rationale for regulating bank liquidity by highlighting the market failures that it addresses while reviewing key theoretical contributions to the literature on the motivation for prudential liquidity regulation. -
The Impact of Government Debt Supply on Bond Market Liquidity: An Empirical Analysis of the Canadian Market
This paper finds that Government of Canada benchmark bonds tend to be more illiquid over the subsequent month when there is a large increase in government debt supply. The result is both statistically and economically significant, stronger for the long-term than the short-term sector, and is robust when other macro factors are controlled for.