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Financial Stability Report

An assessment of potential risks to the stability of Canada's financial system.

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Financial System Hub

Financial System Hub

Promoting a stable and efficient financial system.

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June 21, 2008

Financial Market Turmoil and Central Bank Intervention

In this article, we consider central bank intervention to address financial market turmoil with a focus on the questions of why, when, and how a central bank might intervene. We set out a policy framework and identify appropriate central bank instruments to respond to extraordinary financial market turmoil, consistent with central bank policy goals and functions.
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