Posts
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February 16, 2023
Parliamentary Appearance by the Governor and the Senior Deputy Governor of the Bank of Canada
On Thursday, February 16, 2023, the Governor of the Bank of Canada, Tiff Macklem, will appear before the House of Commons Standing Committee on Finance. -
February 14, 2023
About the Bank’s interest earnings
The Bank of Canada’s balance sheet reflects the unique role it plays as Canada’s central bank. It is different from the balance sheets of other financial institutions—the assets and liabilities on the Bank’s balance sheet are intended to support its core functions rather than to generate profit. -
The Role of Intermediaries in Selection Markets: Evidence from Mortgage Lending
This paper looks at the role mortgage brokers play in helping borrowers generate quotes and qualify for credit. We find that, on average, borrowers that engage with a mortgage broker pay lower interest rates. However, in about 15% of cases, borrowers are steered towards longer amortizing mortgages than they would have chosen absent a broker. Since mortgages with longer amortization have higher total interest costs over the entire life of the mortgage, this steering is expensive. -
Inflation, Output, and Welfare in the Laboratory
We investigate the effect of inflation on output and welfare in the laboratory. Consistent with monetary theory, we find that inflation acts as a tax on monetary exchange and reduces output and welfare. -
Exporting and Investment Under Credit Constraints
We examine the relationship between firms’ performance and credit constraints affecting export market entry. Using administrative Canadian firm-level data, our findings show that new exporters (a) increase their productivity, (b) raise their leverage ratio and (c) increase investment. We estimate that 48 percent of Canadian manufacturers face binding credit constraints when deciding whether to enter export markets. -
Central Bank Digital Currencies and Banking: Literature Review and New Questions
We review the nascent but fast-growing literature on central bank digital currencies (CBDCs), focusing on their potential impacts on private banks. We evaluate these impacts in three areas of traditional banking: payments, lending and liquidity and maturity transformation. We also take a broader look at CBDCs and highlight two promising directions for future research. -
February 8, 2023
Summary of Governing Council deliberations: Fixed announcement date of January 25, 2023
This is an account of the deliberations of the Bank of Canada’s Governing Council leading to the monetary policy decision on January 25, 2023. -
February 8, 2023
Release of the Bank of Canada’s summary of deliberations
On Wednesday, February 8, 2023, the Bank of Canada will publish a summary of the deliberations that took place ahead of its interest rate decision on January 25, 2023. -
February 7, 2023
Bank of Canada Media Interview – Bloomberg News
Tiff Macklem, Governor of the Bank of Canada, gave an interview to Erik Hertzberg of Bloomberg News.