April 9, 2009 Bank of Canada Announces Details of its Term PRA Operation In accordance with the schedule of term purchase and resale agreement (PRA) auctions announced on 6 March, the Bank of Canada announced today that it will conduct a 28-day term PRA operation as follows. Content Type(s): Press, Market notices
April 9, 2009 Results of the 9 April 2009 Sale of Treasury Bills for Balance Sheet Management Purposes Results of the 9 April 2009 Sale of Treasury Bills for Balance Sheet Management Purposes. Content Type(s): Press, Market notices
April 8, 2009 Price-Level Targeting and Stabilization Policy: A Review Bank of Canada Review - Spring 2009 Steve Ambler This article reviews arguments in the literature for and against price-level targeting, focusing on its costs and benefits compared with inflation targeting. Benefits of price-level targeting include the effect on forward-looking inflation expectations; the ability to substitute for commitment by a central bank to its future policies; lessening forecast errors; better economic performance in response to real shocks because of lower wage indexation; and a reduction in the problem of the zero lower bound on nominal interest rates. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Inflation and prices, Inflation: costs and benefits, Monetary policy framework
April 7, 2009 Results of the 7 April 2009 Term PRA Transaction for Private Sector Instruments The results of today's term PRA operations are as follows. Content Type(s): Press, Market notices
April 7, 2009 Price-Level Uncertainty, Price-Level Targeting, and Nominal Debt Contracts Bank of Canada Review - Spring 2009 Allan Crawford, Césaire Meh, Yaz Terajima Many central banks around the world have embraced inflation targeting as a monetary policy framework. Interest is growing, however, in price-level targeting as an alternative. The choice of frameworks has important consequences for financial contracts, most of which are not fully indexed to the price level. Changes in the price level therefore lead to changes in the real value of contracts. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Inflation targets, Inflation: costs and benefits, Monetary policy framework
April 7, 2009 Bank of Canada Announces the Minimum Bid Rate for Today's Term PRA Facility for Private Sector Instruments The minimum bid rate for today's 85-day Term PRA Facility for Private Sector Instruments is 0.62%. Content Type(s): Press, Market notices
April 6, 2009 Results of the 6 April 2009 Term PRA Transaction The results of today's term PRA operations are as follows. Content Type(s): Press, Market notices
April 6, 2009 Results for the 6 April 2009 Term Loan Facility The results of today's TLF operation are as follows. Content Type(s): Press, Market notices
April 5, 2009 Unexpected Inflation and Redistribution of Wealth in Canada Bank of Canada Review - Spring 2009 Césaire Meh, Yaz Terajima One of the most important arguments in favour of price stability is that unexpected inflation generates changes in the distribution of income and wealth among different economic agents. These redistributions occur because many loans are specified in fixed dollar terms and unexpected inflation redistributes wealth from creditors to debtors by reducing the real value of nominal assets and liabilities. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Central bank research, Inflation and prices, Inflation: costs and benefits, Sectoral balance sheet
April 3, 2009 The Bank of Canada Releases Its Annual Report for 2008 Media Relations Ottawa, Ontario The Bank of Canada's Annual Report for 2008 was tabled in the House of Commons today. Content Type(s): Press, Press releases