April 14, 2008
Posts
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April 10, 2008
Credit Markets, Financial Stability, and Monetary Policy
Today, I'd like to discuss some of the crucial issues that we have been dealing with during this period. I'll begin with a brief overview of some key events that have led to the turbulence that continues to upset financial markets and that greatly contributed to the remarkably wide credit spreads that we now witness. -
Credit, Asset Prices, and Financial Stress in Canada
Historical narratives typically associate financial crises with credit expansions and asset price misalignments. The question is whether some combination of measures of credit and asset prices can be used to predict these events. -
A Model of Housing Boom and Bust in a Small Open Economy
This paper considers a dynamic stochastic general equilibrium model for a small open economy and finds that an improvement in the terms of trade causes a housing boom-bust cycle if the duration of the improvement is uncertain. -
April 3, 2008
Results of the 3 April 2008 Term PRA Transaction
The results of today's term PRA operations are as follows: -
April 2, 2008
Trends and Challenges in the Global Economy and What They Mean for Canada and Ontario
As is the case for so many cities and regions in Canada, London's economy and that of southwestern Ontario are directly affected by changes in the global economy. And, as with so many things in life, the better we understand the forces of change, the better equipped we are to deal with them. -
March 31, 2008
Eligibility Criteria and Conditions for Accepting Asset-Backed Commercial Paper (ABCP) as Collateral for the Bank of Canada's Standing Liquidity Facility (SLF)
On 5 March 2008, the Bank released for comment its proposed eligibility criteria for accepting ABCP and noted that two broad policy objectives guided the Bank's assessment. First, the eligibility criteria should mitigate any risks to the Bank that might be associated with accepting ABCP securities as collateral for the SLF. -
China's Exchange Rate Policy: A Survey of the Literature
China's integration into the world economy has benefited its people by reducing poverty and raising living standards, and it has benefited the industrialized world by producing manufactured goods at lower cost. It has also raised geopolitical concerns as China's power grows, economic concerns as the manufacturing base in many industrialized countries erodes, and polemics as proposals of protectionist measures to counter China's export growth are put forward. -
Sterilized Intervention in Emerging-Market Economies: Trends, Costs, and Risks
The author examines recent trends in sterilized intervention among emerging-market economies, to determine the size and extent of this policy in relation to earlier periods of heavy reserve accumulation. He then analyzes whether the domestic costs and risks of substantial and prolonged sterilization are beginning to manifest themselves. -
March 20, 2008
Operational Changes to the Bond Buyback Program
As announced in the Debt Management Strategy 2008-2009, minor operational changes will be made to the bond buyback program to broaden the eligible basket of securities available for buyback operations. The changes are as follows: