Posts
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February 24, 2023
The lifespan of a bank note
At the Bank of Canada, we assessed the life cycle of bank notes to confirm that polymer notes have a smaller environmental footprint than paper notes. Polymer notes have a longer life and then are recycled. -
A central bank digital currency for offline payments
Offline functionality is a key consideration for a potential CBDC. We describe the different types of offline functionality based on their duration outside of network connection—either intermittent (for short periods) or extended (for longer periods). We discuss the advantages and drawbacks of each and consider implications for end-user devices, system resilience and universal accessibility. -
February 24, 2023
Bank of Canada announces 2022–23 scholarship recipients
The Bank of Canada is pleased to announce this year’s recipients of its scholarship awards for students with disabilities, Indigenous students, LGBTQ2S+ students, francophones and students who identify as a woman or as a member of a visible minority or racialized group. -
On the Fragility of DeFi Lending
We develop a dynamic model to capture key features of decentralized finance lending. We identify a price-liquidity feedback: the market outcome in any given period depends on agents' expectations about lending activities in future periods, with higher future price expectations leading to more lending and higher prices in that period. -
The Canadian Neutral Rate of Interest through the Lens of an Overlapping-Generations Model
We use a small open economy model with overlapping generations to evaluate secular dynamics of the neutral rate in Canada from 1980 to 2018. We find that changes in both foreign and domestic factors resulted in a protracted decline in the neutral rate. -
Learning in a Complex World: Insights from an OLG Lab Experiment
This paper brings novel insights into group coordination and price dynamics in complex environments. We implement a chaotic overlapping-generation model in the lab and find that group coordination is always on the steady state or on the two-cycle and that behavior is non-monotonic. -
February 16, 2023
Our commitment to 2% inflation
Deputy Governor Paul Beaudry explains why the 2% target remains the centrepiece of the Bank of Canada’s inflation-targeting framework. -
February 16, 2023
Speech by Paul Beaudry, Deputy Governor of the Bank of Canada
On Thursday, February 16, 2023, Paul Beaudry, Deputy Governor of the Bank of Canada, will speak before the Alberta School of Business, University of Alberta. -
February 16, 2023
No two ways about it: Why the Bank is committed to getting back to 2%
Deputy Governor Paul Beaudry discusses the benefits of being near the Bank’s 2% inflation target and the dangers of straying from it for too long.