February 23, 2012
Posts
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Why Is Cash (Still) So Entrenched? Insights from the Bank of Canada’s 2009 Methods-of-Payment Survey
The authors present key insights from the Bank of Canada’s 2009 Methods-of-Payment survey. In the survey, about 6,800 participants completed a questionnaire with detailed information regarding their personal finances, as well as their use and perceptions of different payment methods. -
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An International Dynamic Term Structure Model with Economic Restrictions and Unspanned Risks
We construct a multi-country affine term structure model that contains unspanned macroeconomic and foreign exchange risks. The canonical version of the model is derived and is shown to be easy to estimate. -
February 13, 2012
Bank of Canada submits comments to U.S. regulators regarding Joint Proposal on Prohibitions and Restrictions on Proprietary Trading
The Bank of Canada today submitted written comments to U.S. regulators regarding their proposed rule to implement Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. -
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Price Competition and Concentration in Search and Negotiation Markets: Evidence from Mortgage Lending
This paper examines the impact of bank consolidation on mortgage rates in order to evaluate the extent to which mortgage markets are competitive. Mortgage markets are decentralized and so rates are determined through a search and negotiation process. -
Fooled by Search: Housing Prices, Turnover and Bubbles
his paper develops and estimates a model to explain the behaviour of house prices in the United States. The main finding is that over 70% of the increase in house prices relative to trend during the increase of house prices in the United States from 1995 to 2006 can be explained by a pricing mechanism where market participants are ‘Fooled by Search.’ -
February 7, 2012
Raising the House of Reform
Senior Deputy Governor Tiff Macklem discusses the importance of pressing ahead with financial reforms despite the weak global recovery. -