Posts

• November 20, 2003

  Governor Says Low and Predictable Inflation Has Led to Better Labour Market Performance

  Media Relations St. John's, Newfoundland and Labrador

  On the 25th anniversary of the end of wage and price controls under the Anti-Inflation Board, Governor David Dodge today explored the effects of low inflation on the performance of Canadian labour markets.

  Content Type(s): Press, Press releases
• November 20, 2003

  Technical Note: Elimination of Retroactive Settlement in the ACSS

  Bank of Canada Review - Autumn 2003 Eric Tuer

  Effective 1 November 2003, the Bank of Canada abandoned its practice of backdating the results of settlement of payments through the Automated Clearing Settlement System (ACSS). It has adopted instead a system of "next-day" settlement under which the results of the settlement process will appear on the central bank's books on the day the items actually settle in the ACSS. Since July 1986, settlement of these items had occurred at noon the day after items were presented for clearing, but the results were recognized on the Bank's books the previous day, through backdating, or "retroactive" settlement. The new system should simplify the payments process and improve the reporting of settlement risk, as well as promote cost-effectiveness within the payments systems. ACSS participants have agreed among themselves to implement an interest-compensation mechanism in order to avoid imposing a float charge on their customer base.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): Payment clearing and settlement systems
• November 20, 2003

  Low and Predictable Inflation and the Performance of Canadian Labour Markets

  Lecture David Dodge Memorial University of Newfoundland St. John's, Newfoundland and Labrador

  The goal of Canadian monetary policy is to contribute to solid economic performance and rising living standards. The best way we can do this is by keeping inflation low, stable, and predictable. This has important implications for labour market performance.

  Content Type(s): Press, Speeches and appearances, Lectures
• November 17, 2003

  Global Challenges, Canadian Opportunities

  Remarks David Dodge Office for Partnerships for Advanced Skills Annual Visionary Seminar Ottawa, Ontario

  It is certainly nothing new to say that economies have become increasingly globalized. In his 1962 book, The Gutenberg Galaxy, Marshall McLuhan observed that the electronic mass media were collapsing time and space barriers. This enabled people to communicate on a global scale. He coined the term "global village" to describe this change.

  Content Type(s): Press, Speeches and appearances, Remarks
• November 3, 2003

  On Economic Education

  Remarks David Dodge David Dodge Tribute Dinner hosted by the Canadian Foundation of Economic Education Toronto, Ontario

  The program this evening focuses on the value of public service and the importance of economic and financial literacy for the well-being of Canadians. These two themes have special significance for me, as my career has involved time spent in the public service as well as teaching.

  Content Type(s): Press, Speeches and appearances, Remarks
• November 3, 2003

  Bank of Canada announces the elimination of retroactive settlement in the ACSS

  The Bank of Canada announced that, effective 1 November 2003, it will no longer backdate the results of payments settling through the Automated Clearing Settlement System (ACSS), an accounting practice that has been in place since July 1986.

  Content Type(s): Press, Market notices

• Excess Collateral in the LVTS: How Much is Too Much?

  Staff Working Paper 2003-36 Kim McPhail, Anastasia Vakos

  The authors build a theoretical model that generates demand for collateral by Large Value Transfer System (LVTS) participants under the assumption that they minimize the cost of holding and managing collateral for LVTS purposes. The model predicts that the optimal amount of collateral held by each LVTS participant depends on the opportunity cost of collateral, the transactions costs of acquiring assets used as collateral and transferring them in and out of the LVTS, and the distribution of an LVTS participant's payment flows in the LVTS.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Payment clearing and settlement systems JEL Code(s): E, E4, E44, G, G2, G21

• Real Exchange Rate Persistence in Dynamic General-Equilibrium Sticky-Price Models: An Analytical Characterization

  Staff Working Paper 2003-35 Hafedh Bouakez

  This paper assesses analytically the ability of dynamic general-equilibrium sticky-price models to generate persistent real exchange rate fluctuations. It develops a tractable general-equilibrium model with Calvo-type price stickiness.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Exchange rates, International topics JEL Code(s): F, F3, F31, F4, F41
• October 29, 2003

  Bank of Canada Governor David Dodge corrects a misstatement

  Media Relations Ottawa, Ontario

  Bank of Canada Governor David Dodge corrects a misstatement he made in responding to a question yesterday relating to what he heard at the G-20 meeting about U.S. growth and how it might affect Bank of Canada projections.

  Content Type(s): Press, Press releases
• October 23, 2003

  Opening Statement before the Senate Banking, Trade and Commerce Committee

  Opening statement David Dodge Senate Banking, Trade and Commerce Committee

  The last time that I appeared before this committee was after the release of our April Report. Since then, our economy has been hit by a number of unusual shocks. Because of these shocks and other factors, growth has been weaker than expected. We now estimate that there is more slack in the economy than we had projected in April.

  Content Type(s): Press, Speeches and appearances, Opening statements