January 15, 2001 Janet Cosier Appointed Chair of Canadian Payments Association Media Relations Ottawa, Ontario The Bank of Canada announced today that Janet Cosier, Adviser to the Governor, has been appointed Chair of the Board of Directors of the Canadian Payments Association. Content Type(s): Press, Press releases
Core Inflation Technical Report No. 89 Seamus Hogan, Marianne Johnson, Thérèse Laflèche The Bank of Canada uses core CPI inflation, the year-over-year rate of change of the consumer price index excluding food, energy, and the effects of changes in indirect taxes, as the operational guide for monetary policy. Content Type(s): Staff research, Technical reports Topic(s): Inflation and prices JEL Code(s): E, E3, E31
December 31, 2000 Summary of Government of Canada - Outstanding as at 31 December 2000 Content Type(s): Publications, Historical: Securities and loans
December 20, 2000 David Dodge Appointed Governor of the Bank of Canada Media Relations Ottawa, Ontario The Board of Directors of the Bank of Canada announced today that, pursuant to Section 6 of the Bank of Canada Act, it has appointed David Dodge as Governor of the Bank of Canada for a seven-year term, effective 1 February 2001. Content Type(s): Press, Press releases
December 17, 2000 Dynamic General-Equilibrium Models and Why the Bank of Canada is Interested in Them Bank of Canada Review - Winter 2000-2001 Kevin Moran Dynamic general-equilibrium models (DGEMs) are being increasingly used in macroeconomic research. In this article, the author describes the main features of these models and outlines their contribution to economic research performed at the Bank of Canada. He notes that the basic principle of DGEMs is that the modelling of economic activity, even on a scale as large as the economy of a country, should start with a series of microeconomic problems (at the scale of individuals), which, once resolved, are aggregated to represent the macroeconomic reality described by the model. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Economic models
December 16, 2000 The Bank of Canada's Management of Foreign Currency Reserves Bank of Canada Review - Winter 2000-2001 Jacobo De Leon This article describes the Bank's management of the liquid foreign currency portion of the government's official reserves. It broadly outlines the operations of the Exchange Fund Account (EFA), the main account in which Canada's reserves are held. It then briefly reviews the evolution of the objectives and management of the EFA over the past 25 years, particularly in light of the changing level of reserves and developments in financial markets. The EFA is funded by Canada's foreign currency borrowings in capital markets. The article focuses on the comprehensive portfolio framework used to manage the Account, which matches assets and liabilities. Under this framework, funds are invested in assets that match, as closely as possible, the characteristics of foreign currency liabilities issued, helping to immunize the portfolio against currency and interest rate risks. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Financial markets, Interest rates
December 15, 2000 The Federal Government's Use of Interest Rate Swaps and Currency Swaps Bank of Canada Review - Winter 2000-2001 John Kiff, Uri Ron, Shafiq K. Ebrahim Interest rate swaps and currency swaps are contracts in which counterparties agree to exchange cash flows according to a pre-arranged formula over a period of time. Since 1985, the federal government has been using such swaps to manage its liabilities in a cost-effective and flexible manner. The authors outline the characteristics of swap agreements and the ways in which the government uses them. They show that the swap program has been cost-effective, estimating that past and projected savings exceed $500 million. The authors also discuss the methods that the government uses to monitor the counterparty credit risk associated with these transactions. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Interest rates
The Application of Artificial Neural Networks to Exchange Rate Forecasting: The Role of Market Microstructure Variables Staff Working Paper 2000-23 Nikola Gradojevic, Jing Yang Artificial neural networks (ANN) are employed for high-frequency Canada/U.S. dollar exchange rate forecasting. ANN outperform random walk and linear models in a number of recursive out-of- sample forecasts. Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates JEL Code(s): C, C4, C45, F, F3, F31
December 5, 2000 Bank of Canada keeps Bank Rate at 6 per cent Media Relations Ottawa, Ontario The Bank of Canada today announced that it is maintaining the Bank Rate at 6 per cent. The operating band for the overnight rate is unchanged, and the Bank’s target for the overnight rate remains at 5 3/4 per cent. Content Type(s): Press, Press releases
December 4, 2000 Bank of Canada Governor concludes that a floating exchange rate regime continues to make sense for Canada Media Relations Montréal, Quebec In a speech to the Chambre de commerce du Montréal métropolitain, Bank of Canada Governor Gordon Thiessen reviewed the different sides of the argument with respect to a floating exchange rate regime, and concluded that a floating currency continues to make sense for Canada. Content Type(s): Press, Press releases